ALMATIS B.V.: Court Enters Final Decree Closing Chapter 11 Cases----------------------------------------------------------------Almatis B.V. sought and obtained from Judge Martin Glenn of theU.S. Bankruptcy Court for the Southern District of New York afinal decree closing its Chapter 11 case and those of its 12reorganized debtor affiliates.

Section 350(a) of the Bankruptcy Code provides that "[a]fter anestate is fully administered and the court has discharged thetrustee, the court shall close the case."

Counsel to the Reorganized Debtors, Michael Rosenthal, Esq., atGibson Dunn & Crutcher LLP, in New York, maintained that theChapter 11 cases of the Reorganized Debtors have been fullyadministered within the meaning of Section 350. He specificallynoted that:

-- The Court's order confirming the Reorganized Debtors' restructuring plan is final and non-appealable. The Plan Confirmation Order was entered on September 20, 2010, and the Plan was declared effective on September 30, 2010;

-- All property required to be transferred by the Reorganized Debtors' Amended Plan has been transferred;

-- Virtually all distributions have been made as required by the Amended Plan;

-- The Reorganized Debtors have assumed the management of the business and the property dealt with by the Amended Plan; and

The Reorganized Debtors add that they have paid all fees that arecurrently owed to the United States Trustee pursuant Section 1930of the Judiciary and Judicial Procedures Code, but an additionalfee will be due to the U.S. Trustee on January 31, 2011, withrespect to disbursements made during the fourth quarter of 2010.The Reorganized Debtors estimate that the amount of the fee willbe approximately $99,750 and have mailed a check to the Office ofthe U.S. Trustee in that amount. The Reorganized Debtors assurethe Court that once the actual amount of the fee is determined,they will pay any additional amounts owed on or before theJanuary 2011 due date.

The entry of the Final Decree is without prejudice to the rightsof the Reorganized Debtors or any other party-in-interest to seekto reopen the cases for good cause shown, Judge Glenn clarified.

Moreover, the Bankruptcy Court retains jurisdiction to enforce orinterpret its own orders pertaining to the Chapter 11 cases andover the Reorganized Debtors for purposes set forth in theAmended Plan.

The Bankruptcy Court also retains jurisdiction over any pendingmatter in the Reorganized Debtors' cases as of December 28, 2010.

In connection with the closing of these Chapter 11 cases, theCourt also ordered the termination of Epiq Bankruptcy SolutionsLLC's appointment as the Reorganized Debtors' claims and noticingagent.

About Almatis Group

Almatis B.V., operationally headquartered in Frankfurt, Germany,is a global leader in the development, manufacture and supply ofpremium specialty alumina products. With nearly 900 employeesworldwide, the company's products are used in a wide variety ofindustries, including steel production, cement production, non-ferrous metal production, plastics, paper, ceramics, carpetmanufacturing and electronic industries. Almatis operates nineproduction facilities worldwide and serves customers around theworld. Until 2004, the business was known as the chemicalbusiness of Alcoa. Almatis is now owned by Dubai InternationalCapital LLC, the international investment arm of Dubai Holding.

Almatis B.V., and its affiliates filed for Chapter 11 on April 30,2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V.estimated assets of US$500 million to US$1 billion and debts ofmore than US$1 billion in its petition.

Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, servesas counsel to the Debtors in the Chapter 11 cases. Linklaters LLPis the special English and German counsel and De Brauw BlackstoneWestbroek N.V. is Dutch counsel. Epiq Bankruptcy Solutions, LLC,serves as claims and notice agent.

The Debtors' reorganization plan was declared effective onSeptember 30, 2010, allowing the Debtors to fully complete theirfinancial restructuring and emerge from Chapter 11 protection.The Almatis restructuring plan took effect more than a week afterit was confirmed by Bankruptcy Judge Martin Glenn for theSouthern District of New York.

ALMATIS B.V.: Court Vacates Claims Trading Order------------------------------------------------Almatis B.V. sought and obtained a final decree from the U.S.Bankruptcy Court for the Southern District of New York vacatingits prior orders limiting the transfer of claims against thecompany and its debtor affiliates.

The Bankruptcy Court previously entered interim and final orders,which required a "notice and waiting period" governing anytransfer of claims against the Reorganized Debtors to foreigntransferees.

The Claims Trading Order allowed the Reorganized Debtors to seekrelief from the Bankruptcy Court to protect their estate in casea transfer to a foreign entity without minimum contacts withinthe U.S. was contemplated. This was necessary because ofpossibility that a foreign transferee might consider itself to bebeyond the jurisdiction of the Bankruptcy Court, disregard theautomatic stay, and bring legal actions to enforce a claim in aforeign jurisdiction.

Michael Rosenthal, Esq., at Gibson Dunn & Crutcher LLP, in NewYork, said the procedural protection provided by the prior Courtorders is no longer necessary after the Debtors' restructuringplan took effect and the Debtors' pre-bankruptcy liabilities hadbeen restructured.

Mr. Rosenthal added that any issue that may arise can be dealtwith in the appropriate forum without triggering an involuntaryliquidation of the foreign operations of the Reorganized Debtors.

About Almatis Group

Almatis B.V., operationally headquartered in Frankfurt, Germany,is a global leader in the development, manufacture and supply ofpremium specialty alumina products. With nearly 900 employeesworldwide, the company's products are used in a wide variety ofindustries, including steel production, cement production, non-ferrous metal production, plastics, paper, ceramics, carpetmanufacturing and electronic industries. Almatis operates nineproduction facilities worldwide and serves customers around theworld. Until 2004, the business was known as the chemicalbusiness of Alcoa. Almatis is now owned by Dubai InternationalCapital LLC, the international investment arm of Dubai Holding.

Almatis B.V., and its affiliates filed for Chapter 11 on April 30,2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V.estimated assets of US$500 million to US$1 billion and debts ofmore than US$1 billion in its petition.

Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, servesas counsel to the Debtors in the Chapter 11 cases. Linklaters LLPis the special English and German counsel and De Brauw BlackstoneWestbroek N.V. is Dutch counsel. Epiq Bankruptcy Solutions, LLC,serves as claims and notice agent.

The Debtors' reorganization plan was declared effective onSeptember 30, 2010, allowing the Debtors to fully complete theirfinancial restructuring and emerge from Chapter 11 protection.The Almatis restructuring plan took effect more than a week afterit was confirmed by Bankruptcy Judge Martin Glenn for theSouthern District of New York.

ALMATIS B.V.: Jr. Lenders Denied Plea for Access to Docs.---------------------------------------------------------Judge Martin Glenn denied a motion by a group of junior lendersled by Jubilee CDO VIII B.V. to allow the group's legal counsel toaccess certain documents that were produced to Schulte Roth &Zabel.

The group earlier asked the Court to allow its legal counsel,Herrick Feinstein LLP, to access the documents after Almatis B.V.and Oaktree Capital Management Ltd. refused to have them reviewedby the firm.

The sharing of the documents is reportedly governed by astipulation entered into by Almatis, Oaktree and DubaiInternational Capital LLC to protect confidential information.Schulte Roth, as co-counsel to the junior lenders, was previouslygranted access to the documents.

In an 11-page opinion, Judge Glenn said the motion is "purposelyvague" in describing the reasons for seeking access to thedocuments and that the junior lenders' request is not relevant toany matter currently pending before the Court.

"The Debtors' reorganization plan has been confirmed and becameeffective on September 30, 2010, and all distributions under theplan have been made," Judge Glenn said, adding that the documentsare no longer relevant to any issues involved in theadministration of the Chapter 11 cases.

Judge Glenn also pointed out that the junior lenders did not filean adversary proceeding and that there is no pending contestedmatter in which discovery may be taken.

Judge Glenn further said that the statement made earlier by thejunior lenders is far from accurate, pointing out that no matterhow broad the discovery they sought, the stipulation controls thetreatment of confidential materials. The Court notes that itseems group wants access to the documents to prepare litigationclaims for a separate lawsuit.

The group argued in its statement that the documents at issue arerelevant. It asserted that the discovery requests which resultedin the production of confidential materials were broad and notsimply limited to the prepackaged restructuring plan or thevaluation of Almatis.

The group issued the statement in response to objections assertedby Almatis and Oaktree.

Almatis opposed the approval of the motion on grounds that thestipulation allows the use of documents only in connection withthe company's bankruptcy case and related proceedings. For itspart, Oaktree Capital argued that the documents sought by thejunior lenders are no longer relevant and were produced inconnection with a prepackaged restructuring plan, which waswithdrawn after Almatis accepted a better proposal from DIC.

About Almatis Group

Almatis B.V., operationally headquartered in Frankfurt, Germany,is a global leader in the development, manufacture and supply ofpremium specialty alumina products. With nearly 900 employeesworldwide, the company's products are used in a wide variety ofindustries, including steel production, cement production, non-ferrous metal production, plastics, paper, ceramics, carpetmanufacturing and electronic industries. Almatis operates nineproduction facilities worldwide and serves customers around theworld. Until 2004, the business was known as the chemicalbusiness of Alcoa. Almatis is now owned by Dubai InternationalCapital LLC, the international investment arm of Dubai Holding.

Almatis B.V., and its affiliates filed for Chapter 11 on April 30,2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V.estimated assets of US$500 million to US$1 billion and debts ofmore than US$1 billion in its petition.

Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, servesas counsel to the Debtors in the Chapter 11 cases. Linklaters LLPis the special English and German counsel and De Brauw BlackstoneWestbroek N.V. is Dutch counsel. Epiq Bankruptcy Solutions, LLC,serves as claims and notice agent.

The Debtors' reorganization plan was declared effective onSeptember 30, 2010, allowing the Debtors to fully complete theirfinancial restructuring and emerge from Chapter 11 protection.The Almatis restructuring plan took effect more than a week afterit was confirmed by Bankruptcy Judge Martin Glenn for theSouthern District of New York.

The fees allowed for the final compensation of Schultze & BraunGmbH RW include applicable value-added tax of EUR63,294. Thefees of S&B Rechtsanwaltsgesellschaft include applicable value-added tax of EUR16,514.

In a declaration filed with the Court, Jens Weber, a partner atSchultze & Braun GmbH RW, said the firm made "reasonable efforts"to minimize its disbursements and that the expenses incurred was"necessary, reasonable and justified" to serve the needs of theDebtors, their estates and creditors.

Christoph Alexander von Wilcken, Esq., of S&BRechtsanwaltsgesellschaft also filed a declaration in support ofthe firm's final fee application.

About Almatis Group

Almatis B.V., operationally headquartered in Frankfurt, Germany,is a global leader in the development, manufacture and supply ofpremium specialty alumina products. With nearly 900 employeesworldwide, the company's products are used in a wide variety ofindustries, including steel production, cement production, non-ferrous metal production, plastics, paper, ceramics, carpetmanufacturing and electronic industries. Almatis operates nineproduction facilities worldwide and serves customers around theworld. Until 2004, the business was known as the chemicalbusiness of Alcoa. Almatis is now owned by Dubai InternationalCapital LLC, the international investment arm of Dubai Holding.

Almatis B.V., and its affiliates filed for Chapter 11 on April 30,2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308). Almatis B.V.estimated assets of US$500 million to US$1 billion and debts ofmore than US$1 billion in its petition.

Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, servesas counsel to the Debtors in the Chapter 11 cases. Linklaters LLPis the special English and German counsel and De Brauw BlackstoneWestbroek N.V. is Dutch counsel. Epiq Bankruptcy Solutions, LLC,serves as claims and notice agent.

The Debtors' reorganization plan was declared effective onSeptember 30, 2010, allowing the Debtors to fully complete theirfinancial restructuring and emerge from Chapter 11 protection.The Almatis restructuring plan took effect more than a week afterit was confirmed by Bankruptcy Judge Martin Glenn for theSouthern District of New York.

(a) advise the Debtor, where Dewey & LeBoeuf LLP is or may be conflicted, regarding its powers and duties as a Debtor- in-possession in the continued management of its businesses and properties;

(b) attend meetings and negotiate with representatives of creditors and other parties-in-interest;

(c) take necessary action to protect and preserve the Debtor's estate, including prosecuting actions on the Debtor's behalf, defending any action commenced against and representing the Debtor's interests in negotiations concerning litigation, including, but not limited to, objections to claims filed against the Debtor's estate;

(d) prepare on the Debtor's behalf motions, applications, adversary proceedings, answers, orders, reports and papers necessary to the administration of the Debtor's estate;

(e) appear before the Court and any appellate courts and protect the interests of the Debtor's estate before those Courts; and

(f) perform other necessary legal services and provide other necessary legal advice to the Debtor in connection with the Debtor's Chapter 11 case.

Togut Segal will also perform the duties of counsel to the Debtoron matters which may arise where Dewey & LeBoeuf cannot performthose services and while certain aspects of the representationwill necessarily involve Togut Segal and Dewey & LeBoeuf, theservices that Togut Segal will provide will be complementaryrather than duplicative of the services to be performed by suchlead bankruptcy counsel.

The Debtor will pay Togut Segal's professionals according to thefirm's customary hourly rates:

Title Rate per Hour ----- ------------- Partners $800 to $935 Associates and counsel $180 to $720 Paralegals and law clerks $145 to $285

The Debtors will also reimburse Togut Segal for actual andnecessary expenses incurred.

Albert Togut, Esq., a senior member of Togut Segal, disclosesthat on December 2, 2010, his firm was retained as conflictscounsel for the debtors in the Chapter 11 case of GSC Group, Inc.Togut Segal has been advised that Ambac Assurance Corporation, asubsidiary of the Debtor, or one of its affiliates orsubsidiaries may have provided insurance for certain assetssubject to the GSC investment management and advisory services,he relates. He assures the Court that Togut Segal will notrepresent GSC in any matters concerning the Debtor nor will thefirm represent the Debtor in any matter concerning GSC. Dewey &LeBoeuf will handle all matters concerning GSC that involve theDebtor, he adds.

Mr. Togut maintains that Togut Segal is a "disinterested person"as that term is defined under Section 101(14) of the BankruptcyCode.

Committee Objected

The Official Committee of Unsecured Creditors filed an objectionto the Application, asserting that the relief requested in AmbacFinancial Group, Inc.'s Application is too broad and goes wellbeyond seeking to retain Togut, Segal & Segal LLP in the eventthat Dewey & LeBoeuf LLP has a conflict of interest.

Anthony Princi, Esq., at Morrison & Foerster LLP, in New York,counsel to the Committee, contended that Togut's scope ofservices pursuant to the Debtor's Application grants much moreauthority to Togut than is necessary for a firm serving asconflicts counsel. Indeed, a comparison of the scope of servicesin each of Togut's and Dewey's employment applications revealedthat except for the preparation of a disclosure statement andplan of reorganization set forth in Dewey's application, theproposed scope of services that can be performed by both firms isvirtually identical, Mr. Princi pointed out. He also argued thatthe Debtor's describing Togut's employment as cost-saving isillusory because Togut's billing rates are competitive withDewey's.

Against this backdrop, the Committee filed with the Court aproposed order to the Debtor's Application that provides, amongother things, that the Debtor will give written notice to theCommittee when a conflict that requires the use of Togut'sservices is identified and that Togut will not perform any workfor the Debtor until that time. The Committee thus asks theCourt to enter the Committee Proposed Order, a copy of which isavailable for free at:

The Court's order provides that Judge Shelley C. Chapman approvedthe Debtor's Application to hire Togut Segal based on the uniqueand complex circumstances of the Chapter 11 case and will not becited as a precedent for other cases.

Before Togut's filing of an initial pleading naming AmbacAssurance Corporation or any other conflict party as an adverseparty, or communicating with any other party or the Debtor'spersonnel for the first time about any matter with respect towhich the Debtor may be adverse to that party, the Debtor willnotify counsel for the Committee, on a confidential basis, thatthe Debtor has asked Togut to file the pleading or have thatcommunication. Togut may also discuss any matters with Dewey &LeBoeuf and the Debtor's general counsel and staff without havingto first so notify counsel for the Committee.

Nothing in the Court's order creates a duty of the Debtor toadvise counsel for the Committee that Dewey & LeBoeuf or theDebtor's general counsel has discussed or will discuss any issuewith Togut, Judge Chapman clarified.

In addition to the Conflict Parties, as soon as any matter in theDebtor's Chapter 11 case creates a conflict of interest forcounsel with respect to any client of Dewey & LeBoeuf notpreviously disclosed or the Debtor's other counsel, the Debtorwill notify Togut to take over that matter, subject to any dutyto notify counsel to the Committee set forth in the Order, JudgeChapman stated.

About Ambac Financial

Ambac Financial Group, Inc., headquartered in New York City, is aholding company whose affiliates provided financial guarantees andfinancial services to clients in both the public and privatesectors around the world.

Ambac Financial filed a voluntary petition for relief underChapter 11 of the U.S. Bankruptcy Code in Manhattan (Bankr.S.D.N.Y. Case No. 10-15973) on November 8, 2010. Ambac said itwill continue to operate in the ordinary course of business as"debtor-in-possession" under the jurisdiction of the BankruptcyCourt and in accordance with the applicable provisions of theBankruptcy Code and the orders of the Bankruptcy Court.

Ambac's bond insurance unit, Ambac Assurance Corp., did not filefor bankruptcy. AAC is being restructured by state regulators inWisconsin. AAC is domiciled in Wisconsin and regulated by theOffice of the Commissioner of Insurance of the State of Wisconsin.The parent company is not regulated by the OCI.

Ambac's consolidated balance sheet -- which includes non-debtorAmbac Assurance Corp -- showed $30.05 billion in total assets,$31.47 billion in total liabilities, and a $1.42 billionstockholders' deficit, at June 30, 2010.

On an unconsolidated basis, Ambac said in a court filing thatit has assets of ($394.5 million) and total liabilities of$1.6826 billion as of June 30, 2010.

Bank of New York Mellon Corp., as trustee to seven different typesof notes, is listed as the largest unsecured creditor, with claimstotaling about $1.62 billion.

The Vanguard Group, Inc., holds 5.46% of the stock of Ambac and isits largest shareholder.

(j) provide other advisory services as are customarily provided in connection with the analysis and negotiation of a Chapter 11 case as requested and mutually agreed.

The Debtor has agreed to pay Blackstone in accordance with thisfee structure:

1. A monthly advisory fee of $250,000, payable in cash on the eighth day of each month following the Petition Date.

2. An additional fee equal to $8,000,000 payable upon consummation of a restructuring. A restructuring will be deemed to have been consummated upon the execution, confirmation and consummation of a Plan of Reorganization pursuant to an order of the Court or the sale of all or substantially all of the Company or its assets.

3. Reimbursement of all reasonable out-of-pocket expenses incurred during the engagement. The Debtor will pay Blackstone on the Petition Date and maintain thereafter a $25,000 expense advance for which Blackstone will account upon termination of the engagement.

From June 2009 through November 2010, the Debtor, either directlyor indirectly through a subsidiary, paid to Blackstone about$1,517,3212 in fees and expenses as compensation for prepetitionprofessional services including those relating to a potentialcapital raise for the Debtor, the potential restructuring of theDebtor's debt capital structure, and the potential commencementof the Debtor's Chapter 11 case.

Robert J. Gentile, vice president in the compliance department ofBlackstone, discloses that his firm has been engaged by certainparties-in-interest in the Debtor's Chapter 11 case in mattersunrelated to the bankruptcy case. Among other things, he revealsthat:

* Affiliates of Blackstone serve as general partners for and manage a number of private investment funds, of which the investors are primarily hundreds of unrelated third parties;

* Some of the financial institutions that are parties-in- interest and certain other parties-in-interest may have co- invested with Blackstone Funds or may have extended credit or provided investment banking services to Blackstone, the Blackstone Funds or companies owned by the Blackstone Funds;

* Blackstone may enter into confidentiality agreements with certain parties-in-interest;

* Blackstone is engaged to provide advisory services to five parties-in-matters in matters unrelated to the Debtor or its Chapter 11 case. Three of those parties are American International Group, Bank of Scotland, and Deutsche Bank. The other parties' names have been withheld due to confidentiality agreements;

* Blackstone has been engaged to provide financial advisory services by Kirkland & Ellis LLP, as counsel to the ad hoc committee of secured lenders in Capmark Financial Group Inc.'s bankruptcy case;

* Blackstone has been engaged to provide advisory services by counsel to an ad hoc committee of creditors, which eight members are parties-in-interest in the Debtor's Chapter 11 case. The identity of the eight members is subject to confidentiality agreements to which the firm is a party;

* Blackstone has been engaged by the Bank of Scotland plc, as administrative agent under the Marnell Sher Credit Agreements as its financial advisor on behalf of the lenders; and

* Blackstone has been engaged to act as a mediator to facilitate discussions among Ambac Assurance Corporation, The Weinstein Company LLC and The Weinstein Portfolio Funding Company LLC in connection with a potential restructuring of TWC and WPFC.

Stefan Feuerabendt, senior managing director of Blackstone,relates that his firm does not believe that any of itsinvolvement with any of the entities listed in the GentileDeclaration will adversely affect the Debtor in any way.Blackstone has not represented, does not represent, and will notrepresent any entity on the Parties-in-Interest List in theDebtor's Chapter 11 case nor have any relationship with any suchentity which would be adverse to the Debtor, he assures theCourt.

Messrs. Gentile and Feuerabendt maintain that Blackstone is a"disinterested person" within the meaning of Section 101(14) ofthe Bankruptcy Code.

* * *

Before the entry of the Court's order, Stefan Feuerabendt, seniormanaging director of Blackstone Advisory Partners L.P., remindedJudge Chapman that his firm was retained on a postpetition basisby Dewey & LeBoeuf LLP to advise on the restructuring,reorganization and capital-raising efforts of the Debtor and itssubsidiaries, including Ambac Assurance Corp.

Mr. Feuerabendt disclosed that effective November 8, 2010, thePrepetition Retention was terminated, and since that time,neither Blackstone nor its affiliated companies have represented,advised or provided services to or on behalf of AAC or its boardof directors. Blackstone is currently being employed by theDebtor to provide services and advice solely to the Debtor, notAAC, he clarified. Any analysis of or communications with orregarding AAC in connection with Blackstone's employment pursuantto the Debtor's Application is solely as advisor to the Debtor,he added.

For the avoidance of doubt, since the Petition Date, at therequest of the Debtor and its counsel, Blackstone hascommunication and will communicate with AAC's management, boardof directors and representatives, Mr. Feuerabendt assured theCourt. Any of those communications are on behalf of the Debtor,and are not in any capacity as advisor to AAC, its management,board of directors or representatives, he clarified.

About Ambac Financial

Ambac Financial Group, Inc., headquartered in New York City, is aholding company whose affiliates provided financial guarantees andfinancial services to clients in both the public and privatesectors around the world.

Ambac Financial filed a voluntary petition for relief underChapter 11 of the U.S. Bankruptcy Code in Manhattan (Bankr.S.D.N.Y. Case No. 10-15973) on November 8, 2010. Ambac said itwill continue to operate in the ordinary course of business as"debtor-in-possession" under the jurisdiction of the BankruptcyCourt and in accordance with the applicable provisions of theBankruptcy Code and the orders of the Bankruptcy Court.

Ambac's bond insurance unit, Ambac Assurance Corp., did not filefor bankruptcy. AAC is being restructured by state regulators inWisconsin. AAC is domiciled in Wisconsin and regulated by theOffice of the Commissioner of Insurance of the State of Wisconsin.The parent company is not regulated by the OCI.

Ambac's consolidated balance sheet -- which includes non-debtorAmbac Assurance Corp -- showed $30.05 billion in total assets,$31.47 billion in total liabilities, and a $1.42 billionstockholders' deficit, at June 30, 2010.

On an unconsolidated basis, Ambac said in a court filing thatit has assets of ($394.5 million) and total liabilities of$1.6826 billion as of June 30, 2010.

Bank of New York Mellon Corp., as trustee to seven different typesof notes, is listed as the largest unsecured creditor, with claimstotaling about $1.62 billion.

The Vanguard Group, Inc., holds 5.46% of the stock of Ambac and isits largest shareholder.

(a) assist and advise the Committee in its consultation with the Debtor relative to the administration of the Debtor's Chapter 11 case;

(b) attend meetings and negotiate with representatives of the Debtor and Sean Dilweg, the head of Wisconsin's Office of the Commissioner of Insurance and their advisors;

(c) assist and advise the Committee in its examination and analysis of the conduct of the Debtor's affairs;

(d) assist and advise the Committee in the review, analysis and negotiation of any plans of reorganization that may be filed and to assist the Committee in the review, analysis and negotiation of the disclosure statement accompanying any plans of reorganization;

(e) analyze and advise the Committee regarding tax issues in connection with the Debtor's reorganization;

(f) assist and advise the Committee regarding its examination and analysis of any potential investment in the Debtor by a third party;

(g) take all necessary action to protect and preserve the interests of the Committee and general unsecured creditors, including (i) possible prosecution of actions on their behalf, (ii) if appropriate, negotiations concerning all litigation in which the Debtor is involved; and (iii) if appropriate, review and analysis of claims filed against the Debtor's estate;

(h) generally prepare on behalf of the Committee all necessary motions, applications, answers, orders, reports and papers in support of positions taken by the Committee;

(i) appear, as appropriate, before the Bankruptcy Court, appellate courts, and the U.S. Trustee, and protect the interests of the Committee before those courts and before the U.S. Trustee; and

Morrison & Foerster will also be reimbursed for actual andnecessary expenses incurred.

Anthony Princi, Esq., a partner at Morrison & Foerster LLP --aprinci@mofo.com -- relates that his firm represented an ad hoccommittee of holders of the Senior Notes in connection with theDebtor's restructuring efforts before the Petition Date.Morrison & Foerster was retained by the Ad Hoc Committee onMay 28, 2010. Pursuant to the Ad Hoc Committee engagement,Morrison & Foerster was paid by and received a retainer from theDebtor, a portion of which was used to satisfy prepetition feesand expenses owing to Morrison & Foerster. Morrison & Foersterhas a security interest in the retainer and will continue to holdthe balance of the retainer during the Debtor's Chapter 11 case,Mr. Princi relates.

From May 28, 2010, Morrison & Foerster billed and was paid by theDebtor $1,956,857 for services rendered in connection with thefirm's representation of the Ad Hoc Committee, Mr. Princidiscloses. The amount was received by Morrison & Foerster withinthe 90 days before the Petition Date. On November 17, 2010, uponbeing selected as counsel to the Committee, Morrison & Foersterresigned as counsel to the Ad Hoc Committee. Thus, as of thePetition Date, the Debtor does not owe Morrison & Foerster forlegal services rendered prepetition, Mr. Princi relates. He addsthat as of the Petition Date, Morrison & Foerster is not acreditor of the Debtor.

In addition, Mr. Princi states that certain parties-in-interestare or may be current or former clients of the firm, a scheduleof which is available for free at:

Mr. Princi maintains that Morrison & Foerster is a "disinterestedperson," as that term is defined under Section 101(14) of theBankruptcy Code.

About Ambac Financial

Ambac Financial Group, Inc., headquartered in New York City, is aholding company whose affiliates provided financial guarantees andfinancial services to clients in both the public and privatesectors around the world.

Ambac Financial filed a voluntary petition for relief underChapter 11 of the U.S. Bankruptcy Code in Manhattan (Bankr.S.D.N.Y. Case No. 10-15973) on November 8, 2010. Ambac said itwill continue to operate in the ordinary course of business as"debtor-in-possession" under the jurisdiction of the BankruptcyCourt and in accordance with the applicable provisions of theBankruptcy Code and the orders of the Bankruptcy Court.

Ambac's bond insurance unit, Ambac Assurance Corp., did not filefor bankruptcy. AAC is being restructured by state regulators inWisconsin. AAC is domiciled in Wisconsin and regulated by theOffice of the Commissioner of Insurance of the State of Wisconsin.The parent company is not regulated by the OCI.

Ambac's consolidated balance sheet -- which includes non-debtorAmbac Assurance Corp -- showed $30.05 billion in total assets,$31.47 billion in total liabilities, and a $1.42 billionstockholders' deficit, at June 30, 2010.

On an unconsolidated basis, Ambac said in a court filing thatit has assets of ($394.5 million) and total liabilities of$1.6826 billion as of June 30, 2010.

Bank of New York Mellon Corp., as trustee to seven different typesof notes, is listed as the largest unsecured creditor, with claimstotaling about $1.62 billion.

The Vanguard Group, Inc., holds 5.46% of the stock of Ambac and isits largest shareholder.

(a) review and analyze the business, operations, and financial projections of the Debtor;

(b) review and provide an analysis of any proposed capital structure for the Debtor;

(c) review and provide an analysis of any valuation of the Debtor or its assets;

(d) advise and attend meetings of the Committee as well as meetings with the Debtor or other third parties, including the Office of the Commissioner of Insurance of the State of Wisconsin and its advisors, as appropriate in connection with the matters set forth herein;

(e) review and provide analysis of various issues relating to the Debtor's operating insurance subsidiary, Ambac Assurance Corporation, which is subject a partial rehabilitation in Wisconsin;

(f) review and provide an analysis of any restructuring plan proposed by any party;

(g) assist the Committee in connection with the financial aspects of negotiations with the Debtor;

(h) assist the Committee in the evaluation of strategic alternatives potentially available to the Debtor, including identifying potential investors; and

(i) provide other financial advisory services as the Committee may from time to time reasonably request and which are customarily provided by financial advisors in similar situations.

Lazard will be paid according to this fee structure:

* Monthly Fees: Lazard will be paid a monthly fee equal to $150,000 per month, which will accrue upon execution of the Engagement Letter and on the first day of each month thereafter until any termination of Lazard's engagement pursuant to the Engagement letter. Each Monthly Fee will be paid in advance on the first day of each month.

* Restructuring Fee: A $5,800,000 fee, payable upon consummation of a Restructuring, provided, however, that, in the event the Committee votes in a Committee Meeting on the Restructuring and fewer than four members of the Committee vote in favor of the Restructuring, the amount of the Restructuring Fee will be $4,000,000.

* Expenses: In addition to any fees that may be payable to Lazard, the Debtor will promptly reimburse Lazard for all expenses incurred in connection with, or arising out of Lazard's activities under or contemplated by, their engagement, in an amount not to exceed $50,000 without the Debtor's prior consent, which will not be unreasonably withheld or delayed.

Ari Lefkovits, a director of Lazard Freres, relates that his firmserved as financial advisor to an ad hoc committee of holders ofthe Senior Notes in connection with the Debtor's restructuringefforts before the Petition Date. Lazard was retained by the AdHoc Committee on August 1, 2010. Pursuant to the Ad HocCommittee engagement, Lazard received a retainer from the Debtor,a portion of which was used to satisfy prepetition fees andexpenses owing to Lazard, as defined and disclosed in theLefkovits Affidavit. Lazard also received an expense retainer of$10,000, before the Debtor's filing for bankruptcy, Mr. Lefkovitsnotes.

From the period beginning August 1, 2010, the Debtor paid Lazardabout $615,231 for services rendered in connection with thefirm's representation of the Ad Hoc Committee, according to Mr.Lefkovits. Upon being selected as financial advisors andinvestment bankers to the Committee, Lazard resigned as financialadvisors to the Ad Hoc Committee. As of the Petition Date, theDebtor does not owe Lazard for services rendered before thePetition Date, Mr. Lefkovits avers.

Mr. Lefkovits further notes that Lazard has been retained withinthe last three years to represent certain parties-in-interest inmatters unrelated to the Debtor's Chapter 11 case, a schedule ofwhich is available for free at:

Lazard also has an asset management affiliate, Lazard AssetManagement LLC, Mr. Lefkovits discloses. While Lazard receivespayments from LAM generated by LAM's business operations, LAM isoperated as a separate and distinct affiliate and is separatedfrom the firm's other businesses, including Lazard's financialadvisory services group and its managing directors and employeesadvising the Debtor, by an ethical wall, he assures the Court.

Mr. Lefkovits maintains that Lazard is a "disinterested person"as the term is defined under Section 101(14) of the BankruptcyCode.

About Ambac Financial

Ambac Financial Group, Inc., headquartered in New York City, is aholding company whose affiliates provided financial guarantees andfinancial services to clients in both the public and privatesectors around the world.

Ambac Financial filed a voluntary petition for relief underChapter 11 of the U.S. Bankruptcy Code in Manhattan (Bankr.S.D.N.Y. Case No. 10-15973) on November 8, 2010. Ambac said itwill continue to operate in the ordinary course of business as"debtor-in-possession" under the jurisdiction of the BankruptcyCourt and in accordance with the applicable provisions of theBankruptcy Code and the orders of the Bankruptcy Court.

Ambac's bond insurance unit, Ambac Assurance Corp., did not filefor bankruptcy. AAC is being restructured by state regulators inWisconsin. AAC is domiciled in Wisconsin and regulated by theOffice of the Commissioner of Insurance of the State of Wisconsin.The parent company is not regulated by the OCI.

Ambac's consolidated balance sheet -- which includes non-debtorAmbac Assurance Corp -- showed $30.05 billion in total assets,$31.47 billion in total liabilities, and a $1.42 billionstockholders' deficit, at June 30, 2010.

On an unconsolidated basis, Ambac said in a court filing thatit has assets of ($394.5 million) and total liabilities of$1.6826 billion as of June 30, 2010.

Bank of New York Mellon Corp., as trustee to seven different typesof notes, is listed as the largest unsecured creditor, with claimstotaling about $1.62 billion.

The Vanguard Group, Inc., holds 5.46% of the stock of Ambac and isits largest shareholder.

ANPATH GROUP: Files Form 15 as Stockholders Down to 250-------------------------------------------------------Anpath Group, Inc., filed with the Securities and ExchangeCommission on December 28, 2010, a Form 15 notice of terminationof registration or suspension of its duty to file reports. Anpathfiled the notice pursuant to Rule 15d-6 as the number of itsholders of record of its common stock, par value $0.0001, is downto 250.

The Company filed for Chapter 11 bankruptcy protection on May 20,2010 (Bankr. D. Del. Case No. 10-11652), pursuant to which itproposed a plan of reorganization. Mark E. Felger, Esq., atCozen O'Connor, assists the Company in its restructuring effort.The Company disclosed $1,548,646 in assets and $3,536,825 inLiabilities in its schedules.

The Plan proposed a restructuring of the debt and other claimsagainst the Company vis-a-vis the interests of its currentshareholders. Before it was filed, the Company sought the supportof its principal creditors for the Plan that was being proposed.In connection with this initiative, a super-majority of the SeniorSecured Class of creditors, including Anpath Lending, and a super-majority of the investors holding more than 50% of the ConvertibleNotes all signed the Plan Support Agreement.

APOLLO MEDICAL: Francis Named New CFO After DeWinter Retirement---------------------------------------------------------------A. Noel DeWinter announced his retirement as the Chief FinancialOfficer of Apollo Medical Holdings, Inc., effective December 31,2010. Mr. DeWinter had been the Company's Chief Financial Officersince August 2008.

Concurrently with the retirement of Mr. DeWinter, the Company hasappointed Kyle Francis, as the Company's Chief Financial Officereffective January 1, 2011. Mr. Francis has been with the Companysince 2008 and has served as the Executive Vice President ofBusiness Development and Strategy. He will continue to serve inthat function as well as Chief Financial Officer.

About Apollo Medical

Glendale, Calif.-based Apollo Medical Holdings, Inc., provideshospitalist services in the Greater Los Angeles, California area.Hospitalist medicine is organized around the admission and care ofpatients in an inpatient facility such as a hospital or skillednursing facility and is focused on providing, managing andcoordinating the care of hospitalized patients.

The Company's balance sheet at Oct. 31, 2010, showed $1.29 millionin total assets, $1.39 million in total liabilities, and astockholders' deficit of S101,002.

As reported in the Troubled Company Reporter on June 2, 2010,Kabani & Company, Inc., in Los Angeles, expressed substantialdoubt about the Company's ability to continue as a going concern,following the Company's results for the fiscal year endedJanuary 31, 2010. The independent auditors noted that the Companyhas an accumulated deficit of $1.24 million as of January 31,2010, working capital of $1.07 million and cash flows used inoperating activities of $338,141.

The sole purpose of the meeting will be to form a committee orcommittees of unsecured creditors in the Debtors' cases.

The organizational meeting is not the meeting of creditorspursuant to Section 341 of the Bankruptcy Code. A representativeof the Debtor, however, may attend the Organizational Meeting, andprovide background information regarding the bankruptcy cases.

To increase participation in the Chapter 11 proceeding, Section1102 of the Bankruptcy Code requires that the United StatesTrustee appoint a committee of unsecured creditors as soon aspracticable. The Committee ordinarily consists of the persons,willing to serve, that hold the seven largest unsecured claimsagainst the debtor of the kinds represented on the committee.Section 1103 of the Bankruptcy Code provides that the Committeemay consult with the debtor, investigate the debtor and itsbusiness operations and participate in the formulation of a planof reorganization. The Committee may also perform other servicesas are in the interests of the unsecured creditors whom itrepresents.

B&F MARINE: Files for Bankruptcy to Restructure $1.8 Mil. Debt--------------------------------------------------------------Paul Brinkmann at South Florida Business Journal reports that B&FMarine is in Chapter 11 to restructure a high-interest loan fromRegions Bank for about $1.8 million, which is secured by a lien onB&F's retail store.

"Regions would only give them a high-interest loan for a shorttime. The purpose of the case is to restructure that debt andgive them an opportunity to stabilize," the report quotes LuisSalazar, B&F's attorney, as stating.

B&F Marine is marine retailer in Miami. Anti-Castro activistAntonio Veciana founded B&F Marine in 1961. During good times, itexpanded to four locations, but has since closed three and isfocusing on its main location at 4001 S.W. 72nd Ave.

BANK OF FLORIDA: Reports $11.0MM Gain from Discontinued Operations------------------------------------------------------------------Bank of Florida Corporation filed its quarterly report on Form10-Q, reporting net income of $10.2 million for the three monthsended June 30, 2010, compared with a net loss of $6.5 million forthe same period ended June 30, 2009.

Net income for the second quarter of 2010 included a gain fromdiscontinued operations of $11.0 million (net of a $14.6 milliongain on the disposal of the banking subsidiaries as certainestimated net losses and expenses reported in prior periods werenot realized on a cash basis prior to transfer of the bankingsubsidiary assets and liabilities to the FDIC as receiver).

The Company's balance sheet as of June 30, 2010, showed$4.8 million in total assets, $270,000 in total liabilities, andstockholders' equity of $4.5 million.

Total assets decreased to $4.8 million at June 30, 2010, from$1.4 billion at December 31, 2009, as a result of assumption bythe FDIC as receiver of all assets and liabilities of the Banksubsidiaries on May 28, 2010.

On May 28, 2010, the Company's principal operating subsidiariesBank of Florida - Southwest, Bank of Florida - Southeast and Bankof Florida - Tampa Bay, were closed by the Florida Office ofFinancial Regulation and placed into receivership with the FDIC.The Company's failure to comply with the capital requirements of anumber of regulatory enforcement actions to which it was subjectwas the cause of the failure of the Banks. Since then, theCompany's only remaining operations are those of the Bank ofFlorida Trust Company, which cannot be expected to providesignificant revenues or profits relative to the potential of theCompany's prior operations.

"Although we are presently continuing to operate the Trust Companywe are also currently evaluating our options relative to the TrustCompany, which include continuing to operate it, selling it,merging it into another financial and any other reasonable, viablestrategic transaction. If we ultimately elect an option otherthan continuing to operate the Trust Company, it is our intent towind down our operations following divestiture of the TrustCompany. If we do elect to divest of the Trust Company, or if weare not successful in continuing its operations in a profitablemanger, we may not be able to continue as a going concern. Inwhich case, share of our common stock will have no value," theCompany said in the filing.

Naples, Fla.-based Bank of Florida Corporation. (Nasdaq: BOFL)-- http://www.bankofflorida.com/-- was incorporated in Florida in September 1998. On May 28, 2010, each of the Company's threesubsidiary banks (Bank of Florida - Southwest, Bank of Florida -Southeast and Bank of Florida - Tampa Bay) was closed by theFlorida Office of Financial Regulation and placed intoreceivership with the Federal Deposit Insurance Corporation("FDIC"). Since then, the Company's only remaining operations arethose of Bank of Florida Trust Company ("the Trust Company").

The Company is currently in the process of evaluating its optionsrelative to the Trust Company, which include continuing to operateit, selling it, merging it into another financial institution andany other reasonable, viable strategic transaction. If theCompany ultimately elects an option other than continuing tooperate the Trust Company, it is the Company's intent to wind downits operations following divestiture of the Trust Company.

BION ENVIRONMENTAL: Names William O'Neill as New Chief Executive----------------------------------------------------------------On December 22, 2010, Bion Environmental Technologies Inc.executed a final agreement with William O'Neill pursuant to whichhe will become Bion's CEO on January 1, 2011. The Agreement runsthrough December 31, 2014. Mr. O'Neill is also joining theCompany's Board of Directors.

Prior to joining the Company, Mr. O'Neill served as VicePresident-Business Development of Advanced Brands until its saleduring 2010.

On December 21, 2010 the Company executed a final agreement withEdward T. Schafer pursuant to which he will become Bion'sExecutive Vice Chairman on January 1, 2011. The agreement runsthrough December 31, 2013. Mr. Schafer will also join theCompany's Board of Directors at that date. Mr. O'Neill previouslyserved as Governor of North Dakota and US Secretary ofAgriculture.

The Company's balance sheet at Sept. 30, 2010, showed$1.93 million in total assets, $1.14 million in total liabilities,$2.52 million of Series B Redeemable Convertible Preferred stock,and a stockholders' deficit of $1.72 million.

GHP Horwath, P.C., in Denver, Colo., expressed substantial doubtabout the Company's ability to continue as a going concern. Theindependent auditors noted that the Company has not generatedrevenue and has suffered recurring losses from operations.

The Company has not generated revenues and has incurred net lossesof approximately $2,976,000 and $1,318,000 during the years endedJune 30, 2010 and 2009, respectively.

BLOCKBUSTER INC: BofA Wants Lift Stay for Park Bank Action----------------------------------------------------------Bank of America, N.A., asks the Bankruptcy Court to (i) modify theautomatic stay for the limited purpose of taking discovery, or inthe alternative, for leave to conduct discovery as to BlockbusterInc. under Rule 2004 of the Federal Rules of Bankruptcy Procedure.

BofA wants to take discovery of Blockbuster relating to a leasedispute that resulted in litigation commenced against BofA, asdefendant, and Blockbuster, as third-party defendant, prior to thecommencement of the bankruptcy cases. BofA also asks theBankruptcy Court to direct Blockbuster to make production ofdocuments relating to that dispute and make available a corporaterepresentative to testify regarding the dispute.

Prior to filing for bankruptcy protection, Blockbuster was athird-party defendant in an action that was commenced in May 2010by Vernon Park Plaza and Parke Bank in the United States DistrictCourt for the Eastern District of Pennsylvania captioned ParkeBank, et al. v. Bank of America, N.A., No. 10-2368. The ParkeBank Action arose out of a dispute between Plaintiffs, as lessorsof a building in Vernon, Connecticut, BofA, as lessee andsublessor, and Blockbuster, as sublessee, relating to whether itis the obligation of BofA, Blockbuster, or neither, to incurcurrently unquantified expenses to restore the leased premises toits pre-lease condition.

As part of the Parke Bank Action, BofA alleged that following theexpiration of its lease with the Plaintiffs, which expiredapproximately three weeks before the expiration of the subleasebetween BofA and Blockbuster, the sublease, by its express terms,became a direct lessee between the Plaintiffs and Blockbuster,with all attendant obligations passing from Bank of America toBlockbuster. BofA later learned that sometime between July 9 andJuly 26, 2010, Blockbuster and the Plaintiffs executed a directlease that purports to make it the obligation of BofA -- asopposed to Blockbuster -- to restore the leased premises,presumably so as not to hinder the Plaintiffs' interests in thelitigation, Andrew B. Eckstein, Esq., at Blank Rome LLP, in NewYork -- AEckstein@BlankRome.com -- alleges.

Because discovery on the Plaintiffs' claims against BofA in theParke Bank Action is ongoing and is set to close on April 8, 2011,BofA seeks an order modifying the automatic stay to allow BofA totake discovery of Blockbuster, and to seek production of documentsrelating to the parties' negotiation and execution of andperformance under the various lease agreements.

Mr. Eckstein contends that the discovery is necessary to BofA'sefforts to defend itself and prove its defenses in the Parke BankAction. He assures Judge Burton R. Lifland that BofA does notseek this discovery for the purpose of affirmatively prosecutingits claims against Blockbuster, given that those claims aresubject to the automatic stay, are the subject of a Proof of Claimfiled by BofA in the bankruptcy proceeding, and will beadministered through the Bankruptcy Court's the claimsadministration process.

About Blockbuster Inc.

Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA,BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a libraryof more than 125,000 movie and game titles. Blockbuster said ithad assets of $1,017,035,832 and debts of $1,464,939,759 as ofAugust 1, 2010.

A steering group of senior secured noteholders is represented byJames P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley AustinLLP. U.S. Bank National Association as trustee and collateralagent for the senior secured notes is represented by DavidMcCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter& Hampton LLP. BDO Consulting is the financial advisor for U.S.Bank.

Lenders led by Wilmington Trust FSB are providing the DIPfinancing. The DIP Agent is represented by Peter Neckles, Esq.and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher &Flom LLP, in New York.

The Official Committee of Unsecured Creditors has retained CooleyLLP as its counsel.

Blockbuster's non-U.S. operations and its domestic andinternational franchisees, all of which are legally separateentities, were not included in the filings and are not parties tothe Chapter 11 proceedings.

The Class Action was filed on February 18, 1999. The classes werecertified on April 23, 2001, but were subsequently decertified onMarch 14, 2008. The Cohen Class Plaintiffs vigorously contendthat the decertification was an error and, on March 30, 2010,moved to certify the class action, which motion was fully briefedand pending in Illinois state court on the Petition Date.

The proposed classes consist of all United States of Americaresidents, who rented videos from Blockbuster, who either incurredlate fees or were forced to purchase unreturned videos betweenFebruary 18, 1994, and December 31, 2004, based on a Blockbustermembership agreement that did not contain an arbitration clause,and who are not bound by the settlement in Scott v. BlockbusterInc., No. D 162-535 (Jefferson County, Tex.).

Blockbuster listed each Class Representative's claim in itsSchedules of Assets and Liabilities as "Litigation-Consumer, CaseNo. Chancery Case No. 99CH02561" and as contingent, unliquidated,disputed and of an undetermined amount. On November 10, 2010, theBankruptcy Court entered an order setting December 22, 2010, asthe deadline for filing proofs of claim. On December 7, 2010, theClass Representatives filed the Class Claim listing a generalunsecured claim of "at least $2,000,000." Each ClassRepresentative also filed an individual proof of claim for "atleast $150.00" (Claim No. 1753), "at least $340.00" (Claim No.1755) and "at least $5.00" (Claim No. 1756).

Heather D. McArn, Esq., at Jenner & Block LLP, New York --hmcarn@jenner.com -- asserts that the Bankruptcy Court shouldexercise its discretion and grant the requested relief. Shecontends that the Class Claim and the request were filed early inthe proceedings, in advance of the Bar Date and well in advance ofany plan of reorganization being proposed or confirmed. She addsthat the proposed classes are of sufficient size, share commonquestions of law and fact, and are represented by parties, whohold claims typical of the classes and who will fairly andadequately protect the interests of the classes.

Class treatment affords the most efficient process for identifyingand fairly resolving the grievances of the estimated many tens ofthousands of Blockbuster customers, who were charged unlawfulpenalty fees during the class period, Ms. McArn further argues.

Judge Burton R. Lifland will convene a hearing on January 20,2011, to consider the request. Objections are due on January 12.

About Blockbuster Inc.

Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA,BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a libraryof more than 125,000 movie and game titles. Blockbuster said ithad assets of $1,017,035,832 and debts of $1,464,939,759 as ofAugust 1, 2010.

A steering group of senior secured noteholders is represented byJames P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley AustinLLP. U.S. Bank National Association as trustee and collateralagent for the senior secured notes is represented by DavidMcCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter& Hampton LLP. BDO Consulting is the financial advisor for U.S.Bank.

Lenders led by Wilmington Trust FSB are providing the DIPfinancing. The DIP Agent is represented by Peter Neckles, Esq.and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher &Flom LLP, in New York.

The Official Committee of Unsecured Creditors has retained CooleyLLP as its counsel.

Blockbuster's non-U.S. operations and its domestic andinternational franchisees, all of which are legally separateentities, were not included in the filings and are not parties tothe Chapter 11 proceedings.

BORDERS GROUP: Delaying Payments to Publishers----------------------------------------------The Wall Street Journal's Jeffrey Trachtenberg reports thatBorders Group Inc. said Thursday it is delaying payments to somepublishers. According to the Journal, Borders said the delayswere part of its efforts to refinance its debt and that it hadnotified the publishers with which it is seeking to restructurepayments.

The Journal relates Borders also said "there can be no assurance"that its larger refinancing efforts will be successful. Itreiterated an earlier disclosure that without refinancing, itcould violate its existing credit agreements in the first quarterof 2011 and "experience a liquidity shortfall."

The Journal reports a Borders spokeswoman declined to say how manypublishers aren't being paid, to name them or say how much moneyis involved.

On December 9, 2010, Borders said for the third quarter endedOctober 30, 2010, sales were $470.9 million, a decrease of 17.6%from the same period a year ago. Comparable store sales declinedby 12.6%. The Company incurred a loss from continuing operationsin the third quarter of $74.4 million. For the same period a yearago, the company had a loss of $37.7 million.

The Company said during the third quarter, its borrowing capacityunder its revolving credit facility was reduced as a result of athird party valuation that lowered the estimated liquidation valueof its inventory. Due to this and other factors, including itslower than projected sales, Borders said it is taking severalactions to improve liquidity. Borders said at that time, it wasin detailed discussions with potential lenders for replacementfinancing that Borders believes will provide sufficient liquiditythrough at least the beginning of 2012. Additional steps thatBorders is pursuing include the potential sale of certain assetsas well as cost reduction and sales generating initiatives.Borders cautioned that there can be no assurance that it will beable to obtain adequate financing or that its other initiativeswill be successful. Borders also said if the steps it is takingare not successful, it could be in violation of the terms of itscredit agreements in the first quarter of calendar 2011, whichcould result in a liquidity shortfall.

The Journal recalls a key shareholder in Borders, activistinvestor William Ackman, earlier in December offered to finance abid for Borders to buy Barnes & Noble for $960 million, or $16 ashare. According to the Journal, Barnes & Noble, which put itselfup for sale in August 2010, declined to comment at the time onMr. Ackman's offer. Many viewed the offer as too low and thatsuch a deal would likely face antitrust scrutiny.

* * *

In a subsequent report, the Journal's Mr. Trachtenberg says JedLyons, the chief executive of Rowman & Littlefield PublishingGroup Inc., which publishes its own titles and distributes booksfor several hundred publishers through its National Book Network,said in an interview the company was taking the step to look outfor its clients. Mr. Lyons said he wanted more information fromBorders and expected to learn more from the bookseller this week."Up until now they'd been paying us like clockwork," he said.

Mr. Trachtenberg also relates Lagardere SCA's Hachette Book Group,one of the largest publishers in the U.S., said last week it woulddecide whether to ship new books to Borders shortly. A secondpublisher, Sourcebooks Inc., said it too was considering itsoptions.

Mr. Trachtenberg also notes another publishing executive, whoasked not to be identified, said that Borders this week may askthe publishers and distributors who didn't receive payments lastweek to convert a portion of those payments to debt. Such a movemight help Borders in its wider refinancing efforts.

Krista Klaus, staff writer for Kansas City Business Journal,reports that Borders Group Inc. is closing its Borders bookstoreat 119th Street and Metcalf Avenue in Overland Park effectiveJanuary 7. Spokesperson Mary Davis said Borders does not haveimmediate plans to re-open the store.

Borders has five other stores in the Kansas City area, includingat 9108 Metcalf Ave. and 15350 W. 119th St. in Olathe.

BROADCAST INT'L: Nets $13.5MM from Equity Sale, Restructures Debt-----------------------------------------------------------------On December 24, 2010, Broadcast International Inc. closed on anequity financing as well as a restructuring of its outstandingconvertible indebtedness.

The Company entered into a Placement Agency Agreement, datedDecember 17, 2010, with Philadelphia Brokerage Corporation,pursuant to which PBC agreed to act as the exclusive agent of theCompany on a "best efforts" basis with respect to the sale of upto a maximum gross consideration of $15,000,000 of units of theCompany's securities, subject to a minimum gross consideration of$10,000,000. The Company agreed to pay PBC a commission of 8% ofthe gross offering proceeds received by the Company, to issue PBC40,000 shares of its common stock for each $1,000,000 raised, andto pay the reasonable costs and expenses of PBC related to theoffering. The Company also agreed to pay PBC a restructuring feein the amount of approximately $180,000 upon the closing of theEquity Financing and simultaneous Debt Restructuring.

Pursuant to the Placement Agency Agreement, the Company enteredinto Subscription Agreements dated December 23, 2010 with selectinstitutional and other accredited investors for the privateplacement of 12,500,000 units of its securities. The SubscriptionAgreements included a purchase price of $1.20 per unit, with eachunit consisting of two shares of common stock and one Warrant topurchase an additional share of common stock. The Warrants have aterm of five years and an exercise price of $1.00 per share.

Net proceeds from the Equity Financing, after deducting thecommissions and debt restructuring fees payable to PBC and theestimated legal, printing and other costs and expenses related tothe financing, were approximately $13.5 million. The Company willuse the net proceeds of the Equity Financing to pay down debt andfor working capital. The units were offered and sold toinvestors, all of whom were either qualified institutional buyersor accredited investors. The Company offered and sold the unitswithout registration under the Securities Act of 1933 in relianceupon the exemption provided by Rule 506 of Regulation Dthereunder. The shares and Warrants sold may not be offered orsold in the United States in the absence of an effectiveregistration statement or exemption from the registrationrequirements under the Securities Act. An appropriate legend willbe placed on the shares issued, unless registered under theSecurities Act prior to issuance.

On November 29, 2010, the Company entered into a bridge loantransaction with three accredited investors pursuant to which theCompany issued unsecured notes in the aggregate principal amountof $1.0 million. Upon the closing of the Equity Financing, thelenders converted the entire principal amount plus accruedinterest into the same units offered in the Equity Financing andwere treated as funds raised with respect to the Equity Financing.

In connection with the Equity Financing and under the terms of theSubscription Agreements, the Company agreed to prepare and file,within 60 days following the issuance of the securities, aregistration statement covering the resale of the shares of commonstock sold in the financing and the shares of common stockunderlying the Warrants. If the Company fails to file theregistration statement within 60 days or to have the registrationstatement declared effective within 120 days following the date ofthe filing of the registration statement, the Company will beobligated to issue additional warrants to the investors topurchase an additional 1,250,000 shares for each 30-day periodafter the deadlines, until either the registration statement isfiled or declared effective, as the case may be.

On December 24, 2010, the Company also closed on the DebtRestructuring, including the Loan Restructuring Agreement. Inconnection therewith, the Company:

i) issued an Amended and Restated Senior Convertible Note in the principal amount of $5.5 million to Castlerigg Master Investment Ltd.

ii) paid $2.5 million in cash to Castlerigg,

iii) cancelled warrants previously issued to Castlerigg that were exercisable for a total of 5,208,333 shares of common stock,

iv) issued 800,000 shares of common stock to Castlerigg in satisfaction of an obligation under a prior loan amendment,

v) entered into a separate letter agreement with Castlerigg dated December 23, 2010, pursuant to which the Company paid Castlerigg an additional $2.75 million in cash in lieu of the issuance of $3.5 million in stock and warrants as provided in the Loan Restructuring Agreement, and

vi) entered into an Investor Rights Agreement with Castlerigg dated December 23, 2010.

As a result of the foregoing, Castlerigg forgave approximately$7.0 million of principal and accrued but unpaid interest.

The Amended and Restated Note, dated December 23, 2010, is asenior, unsecured note that matures in three years from theclosing and bears interest at an annual rate of 6.25%, payablesemi-annually. The Company paid the first year's interest ofapproximately $344,000 at the closing. The Amended and RestatedNote is convertible into shares of common stock at a conversionprice of $1.35 per share, subject to adjustment. The Amended andRestated Note is convertible in whole or in part at any time uponnotice by Castlerigg to the Company. The Amended and RestatedNote also contains various restrictions, acceleration provisionsand other standard and customary terms and conditions. Twoconsolidated subsidiaries of the Company guaranteed theobligations of the Company under the Amended and Restated Note.

The Investor Rights Agreement provides Castlerigg with certainregistration rights with respect to the Company's securities heldby Castlerigg. These registration rights include an obligation ofthe Company to issue additional warrants to Castlerigg if certainregistration deadlines or conditions are not satisfied. Theagreement also contains full-ratchet anti-dilution priceprotection provisions in the event the Company issues stock orconvertible debt with a purchase price or conversion price lessthan the conversion price described above.

In connection with the Debt Restructuring, the Company enteredinto an amended note with the holder of its $1.0 million unsecuredconvertible note, pursuant to which the maturity date of the notewas extended to December 31, 2013.

About Broadcast International

Based in Salt Lake City, Broadcast International, Inc. installs,manages and supports private communication networks for largeorganizations that have widely-dispersed locations or operations.The Company owns CodecSys, a video compression technology toconvert video content into a digital data stream for transmissionover satellite, cable, Internet, or wireless networks, as well asoffers audio and video production services. The Company'senterprise clients use its networks to deliver training programs,product announcements, entertainment, and other communications totheir employees and customers.

HJ & Associates LLC, in Salt Lake City, expressed substantialdoubt about the Company's ability to continue as a going concern,after auditing the Company's financial statements for the year2009. The independent auditors noted that the Company hasincurred recurring losses from operations and has a deficit instockholders' equity and working capital.

The Company's balance sheet as of September 30, 2010, showed$7.3 million in total assets, $25.3 million in total liabilities,and a stockholders' deficit of $18.0 million.

At October 31, 2010, 26,477,841 shares of common stock, $0.01 parvalue, of the Company were outstanding.

On December 23, 2010, the transactions contemplated by theregistered exchange offer described in the Restructuring SupportAgreement were consummated, and the Reporting Persons validlytendered all of their Convertible Senior Notes to the Issuer andthe Reporting Persons did not withdraw them. In connection withthe registered exchange offer, the Reporting Persons received3,962.18 Shares for each $1,000 in principal amount of its 5.25%convertible senior notes due 2025 that had a face value of$60,496,000. The 5.25% convertible senior notes due 2025 were notexercisable within 60 days of the time of the exchange offer. TheReporting Persons also received 3,959.91 Shares for each $1,000 inprincipal amount of its Notes that had a face value of$26,600,000.

About C&D Technologies

C&D Technologies, Inc., provides solutions and services for theswitchgear and control (utility), telecommunications, anduninterruptible power supply (UPS), as well as emerging marketssuch as solar power. C&D Technologies' engineers, manufactures,sells and services fully integrated reserve power systems forregulating and monitoring power flow and providing backup power inthe event of primary power loss until the primary source can berestored. C&D Technologies' unique ability to offer completesystems, designed and produced to high technical standards, setsit apart from its competition. C&D Technologies is headquarteredin Blue Bell, PA.

On September 14, 2010, the Company entered into a restructuringsupport agreement with two convertible noteholders who together asof the date of the RSA held approximately 56% of the aggregateprincipal amount of the 2005 Notes and the 2006 Notes. TheSupporting Noteholders have agreed to a proposed restructuring ofthe 2005 Notes and the 2006 Notes which will be effected through(i) an offer to exchange the outstanding 2005 Notes and 2006 Notesfor up to 95% of the Company's common stock, or (ii) a prepackagedplan of reorganization under Chapter 11 of the U.S. BankruptcyCode.

C&D Technologies elected not to make a semi-annual interestpayment due on its 5.25% Convertible Senior Notes due 2025 onNovember 1, 2010.

In December 2010, C&D Technologies completed its debt-to-equityexchange offer, reducing the Company's total debt fromapproximately $175 million to $50 million and providing thecompany with an appropriate capital structure to continue to meetits obligations and execute its future business plans. Pursuantto the terms of the exchange offer, the participating noteholderswill be issued their pro rata share of 93.09% of the issued andoutstanding Common Stock of the Company after the Company's1:37335:1 forward stock split for the benefit of the existingholders of the Company's common stock has been processed.

Mr. Najafi is the president of Pivotal Capital Corporation, whichis the manager of FFN Investments, LLC, which is the sole memberof Pivotal Global Capacity. Pivotal Global Capacity is the recordowner of all securities subject to this Schedule 13D.

The securities held by Pivotal Global Capacity, LLC, consist ofdebentures immediately convertible into 195,454,028 shares of theCompany's common stock, $0.0001 par value, and warrantsimmediately exercisable to acquire 73,765,625 shares of the of theCompany's common stock, $0.0001 par value.

The percentage is calculated based on a total of 168,233,180shares of the of the Company's common stock, $0.0001 par value,issued and outstanding as of November 5, 2010, as reported on theCompany's Form 10-Q for the quarter ended September 30, 2010, asfiled with the Securities and Exchange Commission on November 15,2010.

The debentures and warrants were acquired from the holders thereofto acquire control of a class of the Debtors' creditors in thebankruptcy proceedings. A plan of reorganization has been filedin the proceedings, but has not been confirmed. PGC intends toacquire substantially all of the assets of the Debtor or controlof the Debtor under the plan of reorganization upon confirmation.

Neither PGC nor any of its affiliates, at this time, intend toacquire any additional securities of the Company. PGC currentlydoes not intend to convert any of the debentures or exercise anyof the warrants to acquire the Company's common stock.

Headquartered in Chicago, Illinois, Capital Growth Systems, Inc.,known as Global Capacity, and its subsidiaries operate in onereportable segment as a single source telecom logistics providerin North America and the European Union. The Company helpscustomers improve efficiency, reduce cost, and simplify operationsof their complex global networks -- with a particular focus onaccess networks.

Capital Growth Systems' balance sheet at September 30, 2010,showed $29.4 million in total assets, $58.6 million in totalliabilities, and a stockholders' deficit of $29.2 million.

CAPRIUS INC: Stockholders to Vote on Merger Proposal----------------------------------------------------Caprius, Inc., filed with the Securities and Exchange Commissionon December 22, 2010, a Schedule 13E-3 relating to an Agreementand Plan of Merger, dated as of November 10, 2010, among Caprius,Vintage, and Merger Sub.

The Transaction Statement on Schedule 13E-3 was being filedjointly by (i) Caprius, Inc., a Delaware corporation and theissuer of the equity securities which are the subject of the Rule13e-3 Transaction, (ii) Vintage Capital Group, LLC, a Delawarelimited liability company, (iii) Capac Co., a Delaware corporationand a newly-formed wholly-owned subsidiary of Vintage, (iv) TheFred C. Sands Children's Trust, which owns 15% of the membershipinterests of Vintage, (v) The Fred C. Sands Family RevocableTrust, which owns 85% of the membership interests of Vintage, and(vi) Fred C. Sands, the manager of Vintage and the trustee of theChildren's Trust and the Family Trust.

The Merger Agreement, provides for Vintage to acquire Capriusthrough a merger of Merger Sub with and into Caprius, with Capriusto be the surviving corporation and a wholly-owned subsidiary ofVintage. Pursuant to the Merger Agreement at the effective timeof the Merger (i) each share of Caprius common stock, par value$0.01 per share shall be converted into the right to receive$0.065 per share, in cash, (ii) each share of Caprius Series EConvertible Preferred Stock, par value $0.01 per share shall beconverted into the right to receive an amount equal to $40.625 pershare in cash, which represents the common-equivalentconsideration for such Series E Preferred based on its currentconversion ratio of 625 shares of Common Stock per share of SeriesE Preferred and the per common share merger consideration of$0.065, and (iii) each share of Caprius Series F ConvertiblePreferred Stock, par value $0.01 per share shall be converted intothe right to receive an amount equal to $6.50 per share in cash,which represents the common-equivalent consideration for suchSeries F Preferred based on its current conversion ratio of 100shares of Common Stock per share of Series F Preferred and the percommon share merger consideration of $0.065, in each case, withoutinterest and less applicable withholding tax, and automatically becancelled and retired.

Concurrently with the filing of the Schedule 13E-3, Caprius isfiling with the Securities and Exchange Commission a preliminaryproxy statement on Schedule 14A pursuant to Section 14(a) of theSecurities Exchange Act of 1934, as amended, relating to a specialmeeting of stockholders of the Company. At the Special Meeting,the stockholders of Caprius will consider and vote upon a proposalto approve the Merger.

The Company's balance sheet at June 30, 2010, showed $1.66 millionin total assets, $5.87 million in total liabilities, and a$4.22 million stockholders' deficit.

* * *

Marcum LLP, in New York City, expressed substantial doubt aboutthe Company's ability to continue as a going concern afterauditing the Company's financial results for fiscal 2009. Theindependent auditors noted of the Company's working capitaldeficiency and substantial recurring losses from operations.

The Company estimated a net loss of US$4.17 million for the monthended November 30, 2010, compared with a net loss of US$4.07million for the month ended Oct. 31, 2010. The Company estimatescash of US$27.88 million at the end of November, compared withUS$31.93 million at the end of October.

Headquartered in Seattle, Washington, Cell Therapeutics, Inc.(NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a biopharmaceutical company committed to developing an integratedportfolio of oncology products aimed at making cancer moretreatable.

The Company's balance sheet at September 30, 2010, showed$46.6 million in total assets, $38.9 million in total liabilities,$13.4 million in common stock purchase warrants, and astockholders' deficit of $5.7 million.

Stonefield Josephson, Inc., in San Francisco, Calif., expressedsubstantial doubt about the Company's ability to continue as agoing concern, following the Company's 2009 results. Theindependent auditors noted that the Company has sustained lossfrom operations, incurred an accumulated deficit, and hassubstantial monetary liabilities in excess of monetary assets asof December 31, 2009.

CELLU TISSUE: S&P Raises Corporate Credit Rating to 'BB'--------------------------------------------------------Standard & Poor's Ratings Services said that it raised itscorporate credit and issue-level ratings on Alpharetta,Ga.-based Cellu Tissue Holdings Inc. following its acquisitionby Spokane, Wash.-based Clearwater Paper Corp. (BB/Stable/--)for approximately $530 million, including the repayment andassumption of debt. These ratings were removed from CreditWatch,where they were placed with positive implications on Sept. 17,2010.

The corporate credit rating was raised to 'BB', the level of therating on Clearwater Paper, from 'B+'. At the same time, S&Praised the issue-level rating on Cellu Tissue's 11.5% seniorsecured notes due 2014 to 'BB' (the same as the corporate creditrating) from 'B+', and the recovery rating is '4', indicatingS&P's expectations of average (30%-50%) recovery in the event of apayment default.

Subsequent to this action, S&P withdrew all of its ratings onCellu Tissue, as 99.99% of the company's existing rated debt,consisting of its senior secured notes due 2014, were validlytendered and purchased by Clearwater as part of the completion ofthe acquisition.

CENTAUR LLC: Expects to Emerge from Bankruptcy Early This Year--------------------------------------------------------------The Herald Bulletin reports that Centaur LLC could emerge fromChapter 11 bankruptcy early 2011. The Company has filed aproposed settlement with the United States Bankruptcy Court thatwould resolve outstanding claims with creditors. A Hoosier Parkofficial says the corporate debt restructuring will not impact theAnderson facility.

According to the Bulletin, the Company said it is in the processof selling its Fortune Valley Casino and Hotel near Denver, andthe company auctioned its license to build Valley View Downs. Thecourt must approve the filing.

The proposed settlement comes as Centaur is scaling back itsholdings to just those in Indiana: Hoosier Park and satellitewagering facilities around the state, the Bulletin notes.

About Centaur LLC

Indianapolis, Indiana-based, Centaur, LLC, aka Centaur Indiana,LLC -- http://www.centaurgaming.net/-- is involved in the development and operation of entertainment venues focused on horseracing and gaming. The Company and its affiliates filed forChapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-10799) on March 6, 2010. The Company estimated its assets anddebts at $500 million to $1 billion as of the Petition Date.Gerard H. Uzzi, Esq., Michael C. Shepherd, Esq., and Lane E. Begy,Esq., at White & Case LLP, serve as counsel to the Debtors.

The 'B+' rating on Cinemark Holdings Inc. reflects its expectationthat leverage and capital spending will remain relatively high,but that the company will continue to be among the more profitabletheater chains. These factors underpin its view that Cinemark'sfinancial profile is aggressive. S&P considers the company'sbusiness profile as weak, given the mature nature of the movieexhibition industry and the company's dependence on box-officeperformance.

S&P's assessment of Cinemark's business profile as weak stems fromits participation in the mature and highly competitive U.S. movieexhibition industry, its exposure to the fluctuating popularity ofHollywood films, and its vulnerability to the risk of increasedcompetition from the proliferation of entertainment alternatives.Cinemark, the third-largest movie exhibitor in the U.S., owned andoperated 428 theaters and 4,938 screens in the U.S. and LatinAmerica as of Sept. 30, 2010. Unlike other rated U.S.-basedexhibitors, the company has a significant presence outside theU.S. in 13 countries, with international operations, primarily inLatin America, providing some geographic diversity. The companyhas had success in selecting sites and building appropriatelysized theaters. Its EBITDA margin compares favorably to peers',benefiting from the company's relatively up-to-date and well-positioned theater circuits, and its good international operatingresults.

For the third quarter ended Sept. 30, 2010, revenue and EBITDAgrew at robust rates of 3% and 19%, respectively, over the prior-year period. Growth in the company's international markets,coupled with outperformance in the domestic market, fueled thegrowth. U.S. admission revenue increased 6% because of a 3%increase in attendance and a 3% increase in average ticket prices.International admissions revenue increased 38% due to a 21%increase in attendance and a 14% increase in average ticketprices. For the 12 months ended Sept. 30, 2010, the company'sEBITDA margin improved by nearly 100 basis points over the sameperiod last year, to 22.4%. Cinemark's EBITDA margin is betterthan its peers', but S&P believes any further margin expansion forthe company and the industry will be minimal. S&P believes thatexhibitors could face difficult comparisons this holiday seasonand in early 2011 because of the standout success of key films ayear ago. S&P projects revenue and EBITDA growth in the mid- tohigh-single-digit percentage range for this year.

CIT GROUP: To Redeem $500 Million of Series A Notes---------------------------------------------------CIT Group Inc. will redeem $500 million of its 7% Series A SecondLien Notes maturing in 2013. After this redemption, approximately$1.6 billion principal amount of the 2013 Series A Notes willremain outstanding.

"Following this redemption we will have repaid more than$7 billion of first lien and second lien debt over the past 12months."

The Company has provided a redemption notice to the trustee andintends to complete the redemption on January 31, 2011. Asprovided under the terms of the Series A Notes, the redemptionprice will be 102% of the aggregate principal amount redeemed andthe notes will be redeemed on a pro-rata basis among all of the2013 Series A Notes.

"The redemption of these Notes will result in reduced borrowingcosts for CIT as we continue to provide much needed credit tosmall businesses and middle market companies," said John A. Thain,Chairman and Chief Executive Officer. "Following this redemptionwe will have repaid more than $7 billion of first lien and secondlien debt over the past 12 months."

In November, CIT announced it would redeem its remaining 10.25%Series B Second Lien Notes maturing in 2017 with a principalamount of approximately $752 million. The Company has provided aredemption notice to the trustee and intends to complete theredemption on January 4, 2011.

As provided under the terms of the Series B Notes, the redemptionprice will be 102% of the aggregate principal amount redeemed.After this redemption is complete, the Company will have redeemedall of its outstanding Series B Notes, which had an aggregateprincipal amount of approximately $2.15 billion.

About CIT Group

Founded in 1908, CIT Group Inc. (NYSE: CIT) -- http://www.cit.com/-- is a bank holding company with more than $35 billion in financeand leasing assets. It provides financing and leasing capital toits more than one million small business and middle market clientsand their customers across more than 30 industries.

CIT Group Inc. and affiliate CIT Group Funding Company of DelawareLLC announced a Chapter 11 filing on November 1, 2009 (Bankr.S.D.N.Y. Case No. 09-16565). Evercore Partners, Morgan Stanleyand FTI Consulting served as the Company's financial advisors andSkadden, Arps, Slate, Meagher & Flom LLP served as legal counselin connection with the restructuring plan. Sullivan & Cromwellserved as legal advisor to CIT's Board of Directors.

CIT Group on November 1, 2009, announced that, with theoverwhelming support of its debtholders, the Board of Directorsvoted to proceed with the prepackaged plan of reorganization forCIT Group Inc. and a subsidiary that will restructure theCompany's debt and streamline its capital structure. None ofCIT's operating subsidiaries, including CIT Bank, a Utah statebank, were included in the filings.

On December 8, 2009, the Court confirmed the Debtors' prepackagedplan. On December 11, 2009, CIT emerged from bankruptcy.

* * *

As reported by the Troubled Company Reporter on May 25, 2010, DBRSassigned various ratings including an Issuer Rating of B (high) toCIT Group Inc. DBRS assigned a BB (high) rating to CIT's FirstLien Secured Credit Facility, a BB (low) rating to the second lienSeries B Notes, a B (high) rating to the Series A Notes, a Brating to the Unsecured Long-Term Debt and a Short-Term rating ofR-4. The trend on all long-term ratings is Positive.

The TCR on August 4, 2010, reported that DBRS affirmed thoseratings. DBRS expects CIT should continue to make progress inimproving and diversifying its funding profile, while restoringunderlying profitability.

On May 25, the TCR also reported that Moody's Investors Serviceassigned a B3 corporate family rating to CIT Group Inc. The TCRsaid May 3, 2010, Standard & Poor's Ratings Services assigned its'B+/B' counterparty credit rating to CIT.

CLAIRE'S STORES: Bank Debt Trades at 8% Off in Secondary Market---------------------------------------------------------------Participations in a syndicated loan under which Claire's Stores,Inc., is a borrower traded in the secondary market at 92.33 cents-on-the-dollar during the week ended Friday, December 31, 2010,according to data compiled by Loan Pricing Corp. and reported inThe Wall Street Journal. This represents an increase of 0.43percentage points from the previous week, The Journal relates.The Company pays 275 basis points above LIBOR to borrow under thefacility. The bank loan matures on May 29, 2014, and carriesMoody's Caa1 rating and Standard & Poor's B- rating. The loan isone of the biggest gainers and losers among 187 widely quotedsyndicated loans with five or more bids in secondary trading forthe week ended Friday.

About Claire's Stores

Claire's Stores, Inc. -- http://www.clairestores.com/-- operates as a specialty retailer of fashion accessories and jewelry forpreteens and teenagers, as well as for young adults in NorthAmerica and internationally. It offers jewelry products thatcomprise costume jewelry, earrings, and ear piercing services; andaccessories, including fashion accessories, hair ornaments,handbags, and novelty items.

Based in Pembroke Pines, Florida, Claire's Stores operates undertwo brands: Claire's(R), which operates worldwide and Icing(R),which operates only in North America. As of January 31, 2009,Claire's Stores, Inc., operated 2,969 stores in North America andEurope. Claire's Stores, Inc., also operates through itssubsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a50:50 joint venture with AEON, Co., Ltd. The Company alsofranchises 198 stores in the Middle East, Turkey, Russia, SouthAfrica, Poland and Guatemala.

CLST HOLDINGS: Board Okays Voluntary Termination of Registration----------------------------------------------------------------On December 27, 2010, the Board of Directors of CLST Holdings Inc.approved the voluntary termination of registration under Section12(g) of the Securities Exchange Act of 1934, as amended, andvoluntary suspension of its duty to file periodic and otherreports under Section 15(d) of the Exchange Act with theSecurities and Exchange Commission.

The Company filed a Certification and Notice of Termination ofRegistration and Suspension on Form 15 on December 28. TheCompany filed the Form 15 voluntarily as part of the Company'splan of dissolution and not based on its receipt of any noticeindicating that the Company failed to satisfy any rule orapplicable listing standard under the Exchange Act.

The Company is eligible to terminate its registration underSection 12(g) of the Exchange Act and its reporting obligationsunder Section 15(d) of the Exchange Act were automaticallysuspended because it has fewer than 300 stockholders of record.

The Company's obligations to file periodic and current reportsunder Section 15(d) of the Exchange Act with the SEC, includingForms 10-K, 10-Q and 8-K, have been automatically suspended and,upon filing of the Form 15, the Company's obligations to filethese periodic and current reports under Section 12(g) of theExchange Act with the SEC will be immediately suspended and thetermination of registration under Section 12(g) of the ExchangeAct is expected to take effect 90 days after the filing of theForm 15.

About CLST Holdings

CLST Holdings, Inc. (OTC: CLHI) does not have significantoperations. Previously, it operated as a distributor of wirelessproducts and provider of distribution and value-added logisticsservices to the wireless communications industry, serving networkoperators, agents, resellers, dealers, and retailers withoperations in the North American and Latin American Regions. Thecompany was formerly known as CellStar Corporation and changed itsname to CLST Holdings, Inc. in March 2007. CLST Holdings, Inc.was founded in 1981 and is based in Dallas, Texas.

On March 26, 2010 the Company filed a certificate of dissolutionwith the Delaware Secretary of State which became effective onJune 24, 2010. As a result of the effectiveness of thecertificate of dissolution, the Company was dissolved and, exceptto the limited extent provided for by Delaware law, its corporateexistence ceased. The corporation has three years to liquidateits assets, prosecute and defend suits, satisfy or provide for itsliabilities, including contingent liabilities, to the extent ofthe corporation's assets, and distribute the net proceeds or theassets in kind, if any, to its stockholders. During this timeperiod, the corporation must cease to carry on the business forwhich it was established, except as may be necessary or incidentalto the winding up of the corporation's affairs.

The Company expects that it could take a couple of years for theCompany to complete its plan of dissolution and make finalliquidating distributions to its stockholders.

CRYOPORT INC: Files Form S-1 to Register Add'l 14-Mil. Shares-------------------------------------------------------------Cryoport, Inc., filed an amended Form S-1 relating to the offerfor sale by existing holders of its common stock of 5,532,418shares of its common stock, par value $0.001 per share, currentlyoutstanding and up to an additional 6,755,293 shares of commonstock issuable upon exercise of the warrants held by the sellingsecurity holders.

Cryoport will not receive any proceeds from the sales of shares ofcommon stock by the selling security holders.

Cryoport disclosed that its common stock is currently traded onthe Over-The-Counter Bulletin Board, commonly known as the OTCBulletin Board, under the symbol "CYRX." As of December 23, 2010,the closing sale price of the Company's common stock was $0.55 pershare.

Total shares outstanding will increase to 20,437,966 following theoffering.

About CryoPort Inc.

Headquartered in Lake Forest, Calif., CryoPort, Inc. (OTC BB:CYRXD) -- http://www.cryoport.com/-- provides innovative cold chain frozen shipping system dedicated to providing superior,affordable cryogenic shipping solutions that ensure the safety,status and temperature of high value, temperature sensitivematerials. The Company has developed a line of cost-effectivereusable cryogenic transport containers capable of transportingbiological, environmental and other temperature sensitivematerials at temperatures below 0-degree Celsius.

At September 30, 2010, the Company had total assets of $5,371,035,total liabilities of $5,524,772, and a stockholders' deficit of$153,737.

DAIS ANALYTIC: Leonard Samuels Discloses 27.66% Equity Stake------------------------------------------------------------In a Schedule 13D filing with the Securities and ExchangeCommission on December 27, 2010, Leonard Edward Samuels disclosedthat he beneficially owns 9,848,162 shares of common stock of DaisAnalytic Corporation, representing 27.66% of the sharesoutstanding. Leah Kaplan-Samuels beneficially owns 3,629,696shares. There were 30,609,793 shares of the Company's $0.01 parvalue common stock outstanding as of November 12, 2010.

On December 11, 2007, December 20, 2007, December 31, 2007 andJanuary 21, 2008, the Company entered into Subscription Agreementswith the Reporting Persons as JTWROS.

Pursuant to each such Subscription Agreement, the Company issued aSecured Convertible Promissory Note to Reporting Persons as JTWROSin the face amount of $50,000, $50,000, $50,000 and $25,000,respectively. The holder of each such Note had the right to electto convert the principal amount and accrued interest on the Noteat any time into shares of Common Stock at a price of $0.20 pershare.

As further consideration, on December 11, 2007, December 20, 2007,December 31, 2007 and January 21, 2008, the Company issued toReporting Persons as JTWROS warrants for the purchase, at any timeon or before that date occurring five years following date ofissuance of the warrant, 250,000, 250,000, 250,000 and 125,000shares of Common Stock; respectively, at an exercise price of$0.25 per share.

If the closing price of the Common Stock on the principal marketor exchange on which the Common Stock is traded is at least $1.50for ten consecutive trading days, the Company can compel exerciseof all or any of the 2007/2008 Warrants.

On December 11, 2007, December 20, 2007, December 31, 2007 andJanuary 21, 2008, the Company entered into Registration RightsAgreements with reporting Persons as JTWROS pursuant to which theIssuer agreed to register for resale under the Securities Act of1933, as amended, the Common Stock issuable upon the conversion ofthe Notes and the exercise of the Warrants.

On January 9, 2009, the Company registered its Common Stock underSection 12(g) of the Exchange Act.

About Dais Analytic

Odessa, Fla.-based Dais Analytic Corporation has developed andpatented a nano-structure polymer technology, which is beingcommercialized in products based on the functionality of thesematerials. The initial product focus of the Company is ConsERV,an energy recovery ventilator. The Company also has new productapplications in various developmental stages.

The Company's balance sheet as of September 30, 2010, showed$1.7 million in total assets, $5.1 million in total liabilities,and a stockholders' deficit of $3.4 million.

As reported in the Troubled Company Reporter on April 7, 2010,Cross, Fernandez & Riley LLP, in Tampa, Fla., expressedsubstantial doubt about the Company's ability to continue as agoing concern, following the Company's 2009 results. Theindependent auditors noted that the Company has incurredsignificant losses since inception and has a working capitaldeficit and accumulated deficit of $2.3 million and $32.2 millionat December 31, 2009.

DEX MEDIA WEST: Bank Debt Trades at 9% Off in Secondary Market--------------------------------------------------------------Participations in a syndicated loan under which Dex Media West LLCis a borrower traded in the secondary market at 90.84 cents-on-the-dollar during the week ended Friday, December 31, 2010,according to data compiled by Loan Pricing Corp. and reported inThe Wall Street Journal. This represents an increase of 0.43percentage points from the previous week, The Journal relates.The Company pays 450 basis points above LIBOR to borrow under thefacility. The bank loan matures on October 24, 2014, and is notrated. The loan is one of the biggest gainers and losers among187 widely quoted syndicated loans with five or more bids insecondary trading for the week ended Friday.

DIABETES AMERICA: Taps Healthcare Markets as Financial Advisor--------------------------------------------------------------Diabetes America, Inc., asks for authorization from the U.S.Bankruptcy Court for the Southern District of Texas to employHealthcare Markets Group as financial advisor and to designate thefirm's Monte B. Tucker as chief restructuring officer.

Healthcare Markets will, among other things:

a. direct the cash management and treasury functions of the Debtor and affiliates, including but not limited to development/maintenance of short-term weekly case use budgets, disbursement of cash and managing overall liquidity;

b. assist the Debtor and CRO develop overall strategic and business plans, including, but not limited to, analyzing alternative plans and exit strategies, and evaluation of the possible rejection of any executory contracts and unexpired leases;

c. assist in the evaluation and analysis of avoidance actions, including fraudulent and preferential transfers; and

d. analyze creditor claims.

Healthcare Markets will be paid based on these rates:

Francis J. Curry $275 Monte B. Tucker $275

Monte B. Tucker, managing director of HealthCare Markets, assuresthe Court that the firm is a "disinterested person" as that termdefined in Section 101(14) of the Bankruptcy Code.

The number of shares of the Company's common stock, $.01 parvalue, outstanding as of November 1, 2010 was 51,889,102.

In connection with that certain Development and License Agreemententered into on December 20, 2010 between Emisphere Technologies,Inc. and Novo Nordisk A/S, a Danish corporation, as furtherdescribed in the Company's Current Report on Form 8-K, filed withthe Securities and Exchange Commission on December 21, 2010,Master Account, Capital Partners (100), Institutional Partners IIand Institutional Partners IIA entered into an agreement with Novoand the Company, dated December 20, 2010 relating to a Developmentand License Agreement dated June 21, 2008 by and between theCompany and Novo and the Insulin License Agreement.

Pursuant to the Agreement, and under the circumstances and subjectto the conditions described therein, among other things (i) MHRagreed, upon the occurrence of an event of default under the LoanAgreement and the Security Agreement, to forbear from the exerciseof certain royalty-free license rights granted to MHR as a securedparty by the Company with respect to certain intellectual propertylicensed to Novo by the Company under the Novo License Agreementsand (ii) if MHR exercises its rights under the Loan Agreement andthe Security Agreement to foreclose on certain patents owned bythe Company and licensed to Novo under the Novo LicenseAgreements, MHR, Novo and the Issuer agree to negotiate in goodfaith to enter into a license agreement with respect to theforeclosed patents on the terms described in the Agreement. Novorequired that the execution by MHR of the Agreement be a conditionto Novo's execution of, and the effectiveness of, the InsulinLicense Agreement.

About Emisphere Technologies

Based in Cedar Knolls, New Jersey, Emisphere Technologies, Inc.(OTC BB: EMIS) -- http://www.emisphere.com/-- is a biopharmaceutical company that focuses on a unique and improveddelivery of pharmaceutical compounds and nutritional supplementsusing its Eligen(R) Technology. The Eligen(R) Technology can beapplied to the oral route of administration as well other deliverypathways, such as buccal, rectal, inhalation, intra-vaginal ortransdermal.

Since its inception in 1986, Emisphere has generated significantlosses from operations. Emisphere anticipates it will continue togenerate significant losses from operations for the foreseeablefuture, and that its business will require substantial additionalinvestment that it has not yet secured.

In its March 25, 2010 audit report on the Company's financialstatements for the year ended December 31, 2009, McGladrey &Pullen, LLP, in New York, said there is substantial doubt aboutthe Company's ability to continue as a going concern. The auditreports prepared by the Company's independent registered publicaccounting firms relating to its financial statements for theyears ended December 31, 2007 and 2008, also included anexplanatory paragraph expressing substantial doubt about theCompany's ability to continue as a going concern.

ENERJEX RESOURCES: CEO & Chairman Resigns; Separation Deal Signed-----------------------------------------------------------------On December 20, 2010, Enerjex Resources Inc. and C. StephenCochennet entered into a Separation and Settlement Agreement to beeffective as of December 31, 2010. The Company agreed to issue C.Stephen Cochennet 75,000 shares of restricted common stock for hisfiscal 2009 bonus. The shares issued were issued pursuant to theEnerJex Resources Stock Incentive Plan and registered on the FormS-8 filed on October 20, 2008.

On December 20, 2010, the Company agreed to issue:

i) 250,000 shares of restricted common stock to Loren Moll for services as a director and committee member,

ii) 250,000 shares of restricted common stock to Tom Kmak for services as a director and committee member, and

iii) 100,000 shares of restricted common stock to Darrel Palmer for services as a director.

The Company said it believes that the issuance of the shares wasexempt from the registration and prospectus delivery requirementsof the Securities Act of 1933, as amended, by virtue of Section4(2) thereof.

Stephen Cochennet's Resignation

On December 20, 2010, in accordance with the terms of theSeparation Agreement, C. Stephen Cochennet, Chairman, ChiefExecutive Officer, Principal Financial Officer, President,Secretary and Treasurer, resigned from his employment and allpositions that he holds with the Registrant effective December 31,2010. Mr. Cochennet was a named executive officer of the Companyfor the fiscal year ended March 31, 2010 and is currently theCompany's sole officer.

Pursuant to the Separation Agreement, the Company agreed:

i) to terminate the employment agreement with Mr. Cochennet dated August 1, 2008 effective as of December 31, 2010 and eliminate the Non-Compete provisions of the employment agreement,

ii) that Mr. Cochennet would resign as a director, employee and officer, effective as of December 31, 2010,

iii) to pay Mr. Cochennet his accrued salary in the amount of $16,667 on or before December 31, 2010,

iv) to pay Mr. Cochennet $50,000 as severance and in consideration for the termination of his employment with the Company,

Overland Park, Kansas-based EnerJex Resources, Inc., formerlyknown as Millennium Plastics Corporation, is an oil and naturalgas acquisition, exploration and development company. TheCompany's oil and natural gas acquisition and developmentactivities are currently focused in Eastern Kansas.

The Company's balance sheet at September 30, 2010, showed$6.41 million in total assets, $14.05 million in totalliabilities, and a stockholders' deficit of $7.63 million.

As reported in the Troubled Company Reporter on July 21, 2010,Weaver & Martin, LLC, in Kansas City, Missouri, expressedsubstantial doubt about the Company's ability to continue as agoing concern, following the Company's results for the year endedMarch 31, 2010. The independent auditors noted that the Companysuffered recurring losses and had negative cash flows.

GAMETECH INT'L: To Recognize $2.8MM Impairment for Corporate HQ---------------------------------------------------------------On September 15, 2010, GameTech International Inc. filed a Form12b-25 disclosing its inability to timely file its Form 10-Q forthe period ended August 1, 2010, primarily due to efforts requiredto complete its assessment of an expected non-cash impairment ofgoodwill and long-lived assets relating to its bingo reportingunit and an expected non-cash impairment of intangible assetsrelating to both its bingo and VLT/Slot reporting units.

On December 22, 2010, the Company completed this assessment anddetermined that it expects to recognize a non-cash impairmentcharge for the period ending August 1, 2010 of approximately$2.822 million relating to its corporate headquarters.

The Company also expects to write down $180,000, representing thetotal carrying amount of the debt acquisition costs related to themortgage on the corporate headquarters. Other than as disclosed,the Company does not expect to recognize an impairment charge onany of its assets for the period ended August 1, 2010.

About GameTech International

Based in Reno, Nevada, GameTech develops and manufactures gamingentertainment products and systems. GameTech holds a significantposition in the North American bingo market with its interactiveelectronic bingo systems, portable and fixed-based gaming units,and complete hall management modules. It also holds a significantposition in select North American VLT markets, primarily Montana,Louisiana, and South Dakota, where it offers video lotteryterminals and related gaming equipment and software. It alsooffers Class III slot machines and server-based gaming systems.

According to the Troubled Company Report on November 4, 2010, theCompany received a letter from the Lender stating that theforbearance period under the Company's line of credit expired onOctober 31, 2010. The letter further states that the Lender hasthe immediate right to commence action against the Company,enforce the payment of the note under the line of credit, commenceforeclosure proceedings under certain loan documents, andotherwise enforce its rights and remedies against the Company.

While the Company continues to actively engage in discussions withthe Lender and is optimistic a resolution can be reached, therecan be no assurance that the Company will be able to furtherextend the forbearance period, obtain waivers or reach asatisfactory agreement with the Lender in a timely manner.

As of November 9, the Company has approximately $1.3 millionoutstanding under the Line of Credit. The outstanding balanceunder the Company's Line of Credit is subject to the non-defaultrate of 4.25%.

GARY PHILLIPS: Has Interim Access to Bank's Cash Collateral-----------------------------------------------------------The Hon. Marcia Phillips Parsons of the U.S. Bankruptcy Court forthe Eastern District of Tennessee approved the the temporaryagreed order authorizing, on an interim basis, Gary PhillipsConstruction, LLC, to use property in the nature of cashcollateral.

The Debtor would use the cash collateral to fund its Chapter 11case, pay suppliers and other parties.

A further hearing will be held on January 18, 2011, at 2:00 p.m.,to consider the Debtor's request for cash collateral use.

The banks claim a security interest in certain receivables,personal property and real properties of the Debtor.

As adequate protection for any diminution in value of the lenders'collateral, the Debtors will grant the banks replacement liens onall assets of the estate.

The Debtor will also maintain insurance coverage on all propertyof the estate, Workmen's Compensation Insurance and GeneralCommercial Liability Insurance in a form and amount acceptable tothe banks and the U.S. Trustee.

About Gary Phillips Construction, LLC

Piney Flats, Tennessee-based Gary Phillips Construction, LLC,filed for Chapter 11 bankruptcy protection on December 3, 2010(Bankr. E.D. Tenn. Case No. 10-53097). Fred M. Leonard, Esq., whohas an office in Bristol, Tennessee, serves as the Debtor'scounsel. According to its schedule, the Debtor disclosed$13,255,698 in total assets and $7,614,399 in total debts as ofthe Petition Date.

The loan, which was arranged by JPMorgan Chase & Co., will payseven percentage points more than the London interbank offeredrate on the loan. Libor, the rate banks charge to lend to eachother, has a 1.75 percent floor, according to the report.

Lenders received one-year soft-call protection of 101 cents,which means A&P would have to pay a one cent premium over facevalue to refinance the debt during its first year, Bloomberg Newsreported.

GREAT ATLANTIC & PACIFIC: Proposes Kirkland as Legal Counsel------------------------------------------------------------The Great Atlantic & Pacific Tea Company, Inc., and its affiliatesseek the U.S. Bankruptcy Court for the Southern District of NewYork's authority to employ Kirkland & Ellis LLP as their legalcounsel effective December 12, 2010.

The Debtors tapped the services of Kirkland & Ellis because ofits expertise and experience in the field of debtors'protections, creditors' rights and business reorganizations underChapter 11 of the Bankruptcy Code, according to Frederic Brace,chief restructuring officer of The Great Atlantic & Pacific TeaCompany Inc.

In a declaration, Mr. Basta, Esq., a partner at Kirkland & Ellis,says that his firm does not hold or represent interest adverse tothe Debtors' estates and that it is a "disinterested person"under Section 101(14) of the Bankruptcy Code.

GREAT ATLANTIC & PACIFIC: Proposes Huron as Financial Advisor-------------------------------------------------------------The Great Atlantic & Pacific Tea Company, Inc., and its affiliatesseek the U.S. Bankruptcy Court for the Southern District of NewYork's approval to employ Huron Consulting Services LLC as theirfinancial advisor effective December 12, 2010.

Huron Consulting is a national management consulting firm withpractices in diverse industries, and experience assisting andadvising companies in need of financial and operationalturnaround and workout assistance, both in and out of court.

(1) assist management in addressing internal process matters, including accounting system cut-offs relating to the restructuring;

(2) assist the Debtors in preparing for a filing under Chapter 11 of the Bankruptcy Code and with the required "first day" papers and coordinating and providing administrative support for the proceeding;

(3) provide testimony before the Bankruptcy Court or any court having jurisdiction over any Chapter 11 proceeding undertaken by the Debtors;

(4) assist in obtaining and presenting information required by internal or external parties in the Debtors' restructuring;

(5) prepare a liquidation analysis and assist in preparing schedules of assets and liabilities, statements of financial affairs, and monthly operating reports; and

The Debtors also agreed to indemnify Huron Consulting for claims,losses and damages arising out of or in connection with theservices to be provided by the firm.

In a declaration, Hugh Sawyer, managing director of HuronConsulting, assures the Court that the firm does not haveinterest adverse to the Debtors' estate, their creditors andequity security holders, and that the firm is a "disinterestedperson" under Section 101(14) of the Bankruptcy Code.

(4) assist in determining the range of values for Debtors on a going concern basis;

(5) advise the Debtors on tactics and strategies for negotiating with stakeholders;

(6) render financial advice to the Debtors and participate in meetings or negotiations with stakeholders, rating agencies or other appropriate parties in connection with any restructuring;

(7) advise the Debtors on the timing, nature, and terms of new securities, other consideration or other inducements to be offered pursuant to restructuring;

(8) assist the Debtors in preparing documentation within Lazard Freres' area of expertise that is required in connection with the restructuring;

(9) attend meetings of the Board of Directors of The Great Atlantic & Pacific Tea Company Inc. with respect to Matters on which Lazard Freres has been engaged to advise;

(10) providing testimony, as necessary, with respect to matters on which Lazard Freres has been engaged to advise in any proceeding before the Court; and

(11) provide the Debtors with other financial restructuring advice and services as requested by the Debtors.

In return for its services, Lazard Freres will receive a monthlyfee of $200,000 in cash payable on the first day of each monthuntil the earlier of the completion of the restructuring or thetermination of the firm's employment. The firm will also receivea fee equal to $7.5 million payable upon consummation of arestructuring and an additional fee of up to $2.5 million in theDebtors' sole discretion.

One half of the monthly fees paid in respect of any monthsfollowing the twelfth month of Lazard Freres' employment will becredited against any restructuring fee payable, provided that thecredit will only apply to the extent that those fees are approvedin entirety by the Court.

In a declaration, David Kurtz, managing director of LazardFreres, assures the Court that the firm is disinterested and doesnot hold or represent interest materially adverse to the Debtorsor their estates.

GSI GROUP: 1 for 3 Reverse Stock Split Already Effective--------------------------------------------------------GSI Group Inc. disclosed that the 1 for 3 reverse stock splitpreviously approved by the company's Board of Directors andshareholders became effective. Following the reverse stock split,the Company has approximately 33.3 million common shares issuedand outstanding. The Company's common shares will trade under thesymbol "LASRD.PK" for the next 20 days and will revert to"LASR.PK" thereafter. The Company also announced that it hasfiled an application to list its common shares on the NASDAQGlobal Market and currently expects that NASDAQ will make adecision on the Company's application by the end of January 2011.The Company's common shares will continue to be quoted on Pink OTCMarkets Inc. until such time as the shares may be listed on theNASDAQ Global Market, if the Company's application is approved byNASDAQ, or another securities exchange.

GSI Group together with two of its subsidiaries filed forChapter 11 protection on Nov. 20, 2009 (Bankr. D. Del. Lead CaseNo. 09-14110). William R. Baldiga, Esq., at Brown Rudnick LLP,represented the Debtors as lead counsel. Mark Minuti, Esq., atSaul Ewing LLP, represented the Debtors as its local counsel. OnJuly 23, 2010, the Debtors consummated their reorganizationthrough a series of transactions contemplated by a Chapter 11plan. The Company's shareholders prior to the emergence frombankruptcy retained approximately 86.1% of its capital stockfollowing emergence.

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In November 2010, Standard & Poor's Ratings Services said that ithas affirmed its ratings, including the 'B' corporate creditrating, on Assumption, Ill.-based GSI Group LLC. At the sametime, S&P revised the outlook to stable from negative.

S&P said the ratings on GSI reflect the company's highly leveragedfinancial profile, which more than offsets its weak business riskprofile. GSI operates in cyclical and competitive nicheagricultural equipment markets and faces raw material costvolatility. The company's leading position in its niche marketspartially offsets these factors. S&P expects its operatingperformance to continue to recover in 2011, primarily on betterconditions in its end markets.

GUITAR CENTER: Bank Debt Trades at 8% Off in Secondary Market-------------------------------------------------------------Participations in a syndicated loan under which Guitar Center,Inc., is a borrower traded in the secondary market at 92.16 cents-on-the-dollar during the week ended Friday, December 31, 2010,according to data compiled by Loan Pricing Corp. and reported inThe Wall Street Journal. This represents an increase of 0.39percentage points from the previous week, The Journal relates.The Company pays 350 basis points above LIBOR to borrow under thefacility. The bank loan matures on October 9, 2014, and carriesMoody's Caa1 rating and Standard & Poor's B1 rating. The loan isone of the biggest gainers and losers among 187 widely quotedsyndicated loans with five or more bids in secondary trading forthe week ended Friday.

Guitar Center carries 'Caa1' corporate family and probability ofdefault ratings from Moody's Investors Service. In December 2009,Moody's said, "The Caa1 Corporate Family Rating reflects GuitarCenter's very weak credit metrics, particularly its interestcoverage, as a result of its very high level of debt."

According to the Journal, Laura Snideman, appointed earlier inDecember as Half Moon Bay's city manager, says she and the five-member city council and top managers will meet in the next fewweeks with residents to alert them about impending changes, suchas potentially outsourcing the town's 15-person police departmentto an outside agency.

According to the Journal, city leaders say they expect to reach anagreement on the necessary cuts. But if they are unsuccessful,Half Moon Bay faces the prospect of a bankruptcy declaration, oreven of disincorporation, effectively turning over governance ofthe city to the county. Neither step would rid the city of debtpayments, which residents would continue to be obligated to pay.

The Journal says Half Moon Bay faces a $500,000 budget deficit forthe current year ending July 30, down from the previous year's$3.4 million budget gap. Since 2007, total city revenue includingsales and property taxes has fallen 14% to about $9 million. Debtpayments from the legal settlement, which total about $1.1 millionannually, have further dragged down the budget.

The Journal relates Half Moon Bay's problems partly stem from alegal settlement over a real-estate transaction in 2007, when thecity agreed to pay $18 million, twice its annual budget of$9 million. The settlement stemmed from a fight the city wagedwith a Palo Alto-based developer over a 25-acre patch of land thatwas under development for 83 homes, which city leaders blocked bydeclaring the area protected wetlands. To satisfy the judgment,the city sold $15 million of bonds and paid $3 million from itsannual budget in 2008. The moves prompted leaders to go on acost-cutting spree, which accelerated when the economy soured.

HARRAH'S ENTERTAINMENT: HOC Bank Debt Trades at 104.95%-------------------------------------------------------Participations in a syndicated loan under which Harrah's OperatingCompany, Inc., is a borrower traded in the secondary market at104.95 cents-on-the-dollar during the week ended Friday,December 31, 2010, according to data compiled by Loan PricingCorp. and reported in The Wall Street Journal. This represents anincrease of 0.34 percentage points from the previous week, TheJournal relates. The Company pays 750 basis points above LIBOR toborrow under the facility. The bank loan matures on October 23,2016, and carries Moody's Caa1 rating and Standard & Poor's Brating. The loan is one of the biggest gainers and losers among187 widely quoted syndicated loans with five or more bids insecondary trading for the week ended Friday.

The Company's balance sheet at Sept. 30, 2010, showed$29.28 billion in total assets, $28.22 billion in totalliabilities, and stockholders' equity of $1.06 billion.

Harrah's Entertainment reported a net loss of $164.8 million on$2.29 billion of net revenues for the quarter ended September 30,2010, compared with a net loss of $1.71 billion on $2.29 billionof net revenues for the same period a year ago.

HAWKER BEECHCRAFT: Bank Debt Trades at 13% Off in Secondary Market------------------------------------------------------------------Participations in a syndicated loan under which Hawker Beechcraftis a borrower traded in the secondary market at 87.32 cents-on-the-dollar during the week ended Friday, December 31, 2010,according to data compiled by Loan Pricing Corp. and reported inThe Wall Street Journal. This represents a drop of 0.53percentage points from the previous week, The Journal relates.The Company pays 200 basis points above LIBOR to borrow under thefacility. The bank loan matures on March 26, 2014, and carriesMoody's Caa1 rating and Standard & Poor's CCC+ rating. The loanis one of the biggest gainers and losers among 187 widely quotedsyndicated loans with five or more bids in secondary trading forthe week ended Friday.

About Hawker Beechcraft

Hawker Beechcraft Acquisition Company, LLC, headquartered inWichita, Kansas, is a leading manufacturer of business jets,turboprops and piston aircraft for corporations, governments andindividuals worldwide.

Hawker Beechcraft Acquisition Company LLC reported net sales forthe three months ended September 30, 2010, of $594.7 million, adecrease of $163.0 million compared to the third quarter of 2009.During the three months ended September 30, 2010, the Companyrecorded an operating loss of $81.4 million, compared to anoperating loss of $721.1 million during the comparable period in2009. The improved operating loss versus the prior period wasprimarily due to charges of $581.5 million related to assetimpairments recorded during the three months ended September 27,2009.

The Company's balance sheet at June 27, 2010, showed$3.420 billion in total assets, $3.408 billion in totalliabilities, and stockholders' equity of $11.6 million.

Hawker Beechcraft reported a net loss of $56.8 million on$639.3 million of total sales for the three months ended June 27,2010, compared with net income of $172.2 million on $816.3 millionof sales for the three months ended June 28, 2009.

HCA INC: Bank Debt Trades at 1% Off in Secondary Market-------------------------------------------------------Participations in a syndicated loan under which HCA, Inc., is aborrower traded in the secondary market at 98.95 cents-on-the-dollar during the week ended Friday, December 31, 2010, accordingto data compiled by Loan Pricing Corp. and reported in The WallStreet Journal. This represents an increase of 0.42 percentagepoints from the previous week, The Journal relates. The Companypays 225 basis points above LIBOR to borrow under the facility.The bank loan matures on November 6, 2013, and carries Moody's Ba3rating and Standard & Poor's BB rating. The loan is one of thebiggest gainers and losers among 187 widely quoted syndicatedloans with five or more bids in secondary trading for the weekended Friday.

As reported by the Troubled Company Reporter on November 12, 2010,Moody's Investors Service assigned a Caa1 (LGD6, 96%) rating toHCA, Inc.'s proposed offering of $1,525 million of seniorunsecured notes due 2021 to be issued at a parent holding company.Moody's understand the proceeds will be used to help fund aproposed $2.0 billion distribution to shareholders. Concurrently,Moody's confirmed the existing ratings of HCA, including the B2Corporate Family and Probability of Default Ratings. Theseactions conclude the review of the ratings initiated on May 7,2010. The ratings outlook has been revised to positive.

HCA, Inc., filed its quarterly report on Form 10-Q, reporting netincome of $325.0 million on $7.65 billion of revenues for thequarter ended Sept. 30, 2010, compared with net income of$274.0 million on $7.53 billion of revenues for the same period ayear ago.

Headquartered in Nashville, Tennessee, HCA is the nation's largestacute care hospital company with 162 hospitals and 104freestanding surgery centers (including eight hospitals and eightfreestanding surgery centers that are accounted for using theequity method) as of September 30, 2010. For the twelve monthsended September 30, 2010, the company recognized revenue in excessof $30 billion.

HERBST GAMING: Bank Debt Trades at 40% Off in Secondary Market--------------------------------------------------------------Participations in a syndicated loan under which Herbst Gaming,Inc., is a borrower traded in the secondary market at 59.75 cents-on-the-dollar during the week ended Friday, December 31, 2010,according to data compiled by Loan Pricing Corp. and reported inThe Wall Street Journal. This represents an increase of 0.86percentage points from the previous week, The Journal relates.The Company pays 187.5 basis points above LIBOR to borrow underthe facility, which matures on December 8, 2013. Moody's haswithdrawn its rating on the bank debt. The loan is one of thebiggest gainers and losers among 187 widely quoted syndicatedloans with five or more bids in secondary trading for the weekended Friday.

About Herbst Gaming

Headquartered in Reno, Nevada, Herbst Gaming, Inc. --http://www.herbstgaming.com/-- is a diversified gaming company. The Company and its subsidiaries focus on two business lines, slotroute operations and casino operations. The Company's routeoperations involves the exclusive installation and, as ofSeptember 30, 2009, operation of around 6,300 slot machines innon-casino locations, such as grocery stores, drug stores,convenience stores, bars and restaurants. The casino operationsconsist of 16 casinos located in Nevada, Iowa and Missouri.

The Company and 17 of its affiliates filed for Chapter 11protection on March 22, 2009 (Bankr. D. Nev. Lead Case No. 09-50752). Thomas H. Fell, Esq., and Gerald M. Gordon, Esq., atGordon Silver, represented the Debtors in their restructuringeffort. Herbst Gaming had $919.1 million in total assets anddebts of $1.57 billion as of the Chapter 11 filing. TheBankruptcy Court issued an order on January 22, 2010, confirmingthe company's amended joint plan of reorganization. The planbecame effective February 5, 2010.

HERCULES OFFSHORE: Bank Debt Trades at 7% Off in Secondary Market-----------------------------------------------------------------Participations in a syndicated loan under which Hercules Offshore,Inc., is a borrower traded in the secondary market at 93.36 cents-on-the-dollar during the week ended Friday, December 31, 2010,according to data compiled by Loan Pricing Corp. and reported inThe Wall Street Journal. This represents an increase of 0.44percentage points from the previous week, The Journal relates.The Company pays 650 basis points above LIBOR to borrow under thefacility. The bank loan matures on July 11, 2013, and carriesMoody's Caa1 rating and Standard & Poor's B- rating. The loan isone of the biggest gainers and losers among 187 widely quotedsyndicated loans with five or more bids in secondary trading forthe week ended Friday.

About Hercules Offshore

Hercules Offshore, Inc. (NASDAQ: HERO) --http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gasexploration and production industry in the United States, Gulf ofMexico and internationally. The Company provides these servicesto integrated energy companies, independent oil and natural gasoperators and national oil companies. The Company operates in sixbusiness segments: Domestic Offshore, International Offshore,Inland, Domestic Liftboats, International Liftboats and DeltaTowing.

The Troubled Company Reporter said on November 17, 2010, Moody'sInvestors Service downgraded the Corporate Family Rating ofHercules Offshore Inc. and the Probability of Default Rating toCaa1 from B2. Moody's also downgraded Hercules' 10.5% seniorsecured notes due 2017, its senior secured revolving creditfacility due 2012, and its senior secured term loan B due 2013,all to Caa1 with LGD3, 45%. The outlook remains negative.

"The inability of Hercules to generate meaningful free cash flowdespite limited reinvestment in its aging fleet of rigs is causefor concern," commented Stuart Miller, Moody's Senior Analyst."Without a significant de-leveraging of its balance sheet,Hercules is following a path that could lead to financial hardshipat the first sign of a market softening." Hercules' Caa1 CFRrating reflects its highly leveraged balance sheet and limitedability to generate free cash flow. The Caa1 rating on the seniorsecured notes reflects their pari passu secured position inHercules' capital structure relative to the senior secured creditfacilities.

Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV)-- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian, is one of the nation's largest homebuilders with operations inArizona, California, Delaware, Florida, Georgia, Illinois,Kentucky, Maryland, Minnesota, New Jersey, New York, NorthCarolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia andWest Virginia. The Company's homes are marketed and sold underthe trade names K. Hovnanian Homes, Matzel & Mumford, BrightonHomes, Parkwood Builders, Town & Country Homes, Oster Homes andCraftBuilt Homes. As the developer of K. Hovnanian's Four Seasonscommunities, the Company is also one of the nation's largestbuilders of active adult homes.

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Hovnanian has a 'CCC' issuer default rating from Fitch Ratings.In April 2010, Fitch said, "While Fitch expects somewhat betterprospects for the housing industry this year, the Rating Outlookfor HOV remains Negative given the challenges still facing thehousing market, which are likely to meaningfully moderate theearly stages of this recovery, and the company's still substantialdebt position and high leverage."

HYSKY COMMS: District Court Rules Neighbors Law Firm Suit---------------------------------------------------------Senior District Judge James C. Fox lifts the stay in the action,The Neighbors Law Firm, P.C. and Patrick E. Neighbors, v. HighlandCapital Management, L.P. and HySky Communications, LLC, Case No.09-cv-352 (E.D.N.C.), as to defendant HySky. On June 30, 2009,the Plaintiffs filed an action against the Defendants in theGeneral Court of Justice, Superior Court Division, Wake County,North Carolina. On August 6, 2009, Defendants removed the actionto the District Court. The Plaintiffs allege they rendered legalservices to the Defendants and the Defendants failed to pay forsuch legal services. The Plaintiffs seek to recover legal feesthrough claims of breach of contract, common law fraud, statutoryfraud. The District Court also issued other rulings in the suit.

A copy of the District Court's December 28, 2010 Order isavailable at http://is.gd/jPtBTfrom Leagle.com.

HySky filed its plan of liquidation on November 30, 2009. TheBankruptcy Court entered an Order confirming the Chapter 11 Planon January 12, 2010.

HYTHIAM INC: Kelly McCrann Does Not Own Any Securities------------------------------------------------------In a Form 3 filing with the Securities and Exchange Commission onDecember 22, 2010, Kelly J. McCrann, a director at Hythiam, Inc.,disclosed that he does not own any securities of the company.

About Hythiam, Inc.

Based in Los Angeles, Hythiam, Inc., is a healthcare servicesmanagement company, providing through its Catasys(R) subsidiaryspecialized behavioral health management services for substanceabuse to health plans.

The Company's balance sheet at Sept. 30, 2010, showed$3.48 million in total assets, $4.11 million in total liabilities,and a stockholders' deficit of $634,000. Stockholders' deficitwas $588,000 at June 30, 2010.

As reported in the Troubled Company Reporter on April 19, 2010,BDO Seidman, LLP, in Los Angeles, expressed substantial doubtabout the Company's ability to continue as a going concern,following its 2009 results. The independent auditors noted thatthe Company has suffered recurring losses from operations andnegative cash flows from operating activities.

As of November 11, 2010, the Company had 6,428,694 shares ofcommon stock outstanding.

On June 30, 2010, InfoLogix, Inc. and its subsidiaries againamended the Loan Agreement with Hercules Technology GrowthCapital, Inc. Pursuant to this amendment, the Company borrowed$1,500,000 from Hercules. This amount was treated as anoveradvance under the Loan Agreement. On October 28, 2010, theCompany and Hercules again amended the Loan Agreement. Pursuantto this Amendment, Hercules funded a term loan in an originalprincipal amount of $500,000 to the Company for the Company torepay outstanding overadvances under the revolving credit facilityunder the Loan Agreement and for general working capital purposes.This amount may be converted into shares of the Common Stock at aprice of $3.30 per share at any time at Hercules' option.

On December 15, 2010, the Company entered into an Agreement andPlan of Merger with Stanley Black & Decker, Inc., a Connecticutcorporation, and Iconic Merger Sub, Inc., a Delaware corporationand direct wholly-owned subsidiary of Parent, providing for themerger of Merger Sub with and into the Company, with the Companysurviving the Merger as a wholly owned subsidiary of Parent.

Immediately after the execution of the Merger Agreement, Herculesand Hercules Technology I, LLC, holding in aggregate ofapproximately 70.1% of the outstanding shares of Common Stock,executed a written consent approving and adopting the MergerAgreement and the transactions contemplated by the MergerAgreement, including the Merger, pursuant to the terms of a votingagreement entered into by and among Hercules, HTI and the Parentsimultaneously with the Merger Agreement. No further action byany other Company stockholder is required in connection with theadoption of the Merger Agreement and the approval of thetransactions contemplated thereby. The Parent did not payadditional consideration to the Company in connection with theexecution and delivery of the Voting Agreement.

At the effective time of the Merger, each outstanding share ofCommon Stock will be cancelled and converted automatically intothe right to receive $4.75 in cash, without interest. Thetransaction is valued at approximately $61.2 million prior totransaction fees, closing costs, and working capital adjustments,and includes the purchase or payoff of substantially all of theCompany's debt.

The consummation of the Merger is subject to various customaryclosing conditions, including:

(i) 20 days having elapsed from the mailing of the definitive information statement, with respect to the Merger Agreement, to the Company's stockholders in conjunction with the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder;

(ii) the absence of a material adverse effect on the Company;

(iii) the absence of legal prohibitions on the completion of the Merger;

(iv) the accuracy of the representations and warranties made by the Company, Parent and Merger Sub; and

(v) the performance, in all material respects, by each of the Company, Parent and Merger Sub of all of its respective obligations, agreements and covenants under the Merger Agreement.

The Merger is not subject to any financing condition. Completionof the Merger is expected to occur early in the first quarter of2011 although there can be no assurance the Merger will closeduring the expected time frame or at all.

On December 15, 2010, in connection with the merger and pursuantto a purchase and sale agreement with Parent and Hercules and HTI,which together constitute the Company's majority stockholder andsenior lender, Parent is expected to purchase all of InfoLogix'sindebtedness owed to Hercules, pay cash for Hercules' warrant toacquire shares of the Company's Common Stock, and allow for theability of Hercules to convert certain obligations currentlyoutstanding into shares of the Company's Common Stock. Pursuantto the merger, Hercules would plan to tender its shares in theCompany.

The Company's balance sheet as of September 30, 2010, showed$31.7 million in total assets, $34.7 million in total liabilities,and a stockholders' deficit of $3.0 million.

As reported in the Troubled Company Reporter on April 21, 2010,McGladrey & Pullen, LLP, in Blue Bell, Pa., expressed substantialdoubt about the Company's ability to continue as a going concern,following the Company's 2009 results. The independent auditorsnoted that the Company has suffered recurring losses fromoperations, has negative working capital and an accumulateddeficit as of December 31, 2009.

IRVINE SENSORS: J. Leon Owns 103,139 Shares of Common Stock-----------------------------------------------------------In a Form 3 filing with the Securities and Exchange Commission onDecember 27, 2010, John Leon, vice president at Irvine SensorsCorp., disclosed that he beneficially owns 103,139 shares ofcommon stock of the company. Mr. Leon has option to purchase anaggregate of 21,816 shares of common stock:

The Company reported a net loss of $11.16 million on$11.72 million of revenues for the fiscal year ended October 3,2010, compared with a net loss of $914,700 on $11.54 million ofrevenues for the fiscal year ended September 27, 2009.

The Company's balance sheet at October 3, 2010, showed$6.32 million in total assets, $16.42 million in totalliabilities, and a stockholders' deficit of $10.10 million.

Squar, Milner, Peterson, Miranda & Williamson, LLP, in Irvine,Calif., expressed substantial doubt about the Company's ability tocontinue as a going concern. The independent auditors noted thatas of October 3, 2010, the Company has negative working capital of$10.1 million and a stockholders deficit of $10.1 million.

IRVINE SENSORS: Joll Balraj Does Not Own Any Securities-------------------------------------------------------In a Form 3 filing with the Securities and Exchange Commission onDecember 27, 2010, Joll Balraj, president and CEO at IrvineSensors Corp., disclosed that he does not own any securities ofthe company.

The Company reported a net loss of $11.16 million on$11.72 million of revenues for the fiscal year ended October 3,2010, compared with a net loss of $914,700 on $11.54 million ofrevenues for the fiscal year ended September 27, 2009.

The Company's balance sheet at October 3, 2010, showed$6.32 million in total assets, $16.42 million in totalliabilities, and a stockholders' deficit of $10.10 million.

Squar, Milner, Peterson, Miranda & Williamson, LLP, in Irvine,Calif., expressed substantial doubt about the Company's ability tocontinue as a going concern. The independent auditors noted thatas of October 3, 2010, the Company has negative working capital of$10.1 million and a stockholders deficit of $10.1 million.

JENNIFER CONVERTIBLES: January 25 Hearing on Reorganization Plan----------------------------------------------------------------Jennifer Convertibles will present its plan for confirmation at ahearing on Jan. 25, according to newsday.com. Under terms of theplan, largest creditor, Haining Mengnu, will own 90.1% of thestock in exchange for $14.9 million in debt and receive 30 percentof recoveries from a liquidating trust. Unsecured creditors willown 9.9 percent of the stock and 70 percent of the liquidatingtrust. Mengnu and other creditors will also receive the proceedsfrom a series of notes. Current Jennifer stockholders would bewiped out. The creditors' committee recommends that creditorsvote yes on the Plan.

About Jennifer Convertibles

Jennifer Convertibles, Inc., was organized as a Delawarecorporation in 1986, and is currently the owner of (i) the largestgroup of sofabed specialty retail stores and leather specialtyretail stores in the United States, with stores located throughoutthe Eastern seaboard, Midwest, West Coast and Southwest, and(ii) seven big box, full-line furniture stores operated under theAshley Furniture HomeStore brand under a license from AshleyFurniture Industries, Inc.

The Company and its affiliates filed for Chapter 11 bankruptcyprotection on July 18, 2010 (Bankr. S.D.N.Y. Case No. 10-13779).Michael S. Fox, Esq., at Olshan Grundman Frome Rosenzweig &Wolosky, LLP, assists the Company in its restructuring effort. TMCapital Corp. is the Company's financial advisor. Mintz, Levin,Cohn, Ferris, Glovsky and Popeo P.C. is the Company's specialsecurities counsel.

The Company estimated its assets and debts at $10,000,001 to$50,000,000.

K-V PHARMACEUTICAL: Going Concern Doubt Raised; Posts $283MM Loss-----------------------------------------------------------------K-V Pharmaceutical Company filed on December 27, 2010, its annualreport for the fiscal year ended March 31, 2010.

BDO USA, LLP, in Chicago, expressed substantial doubt about K-VPharmaceutical's ability to continue as a going concern. Theindependent auditors noted that the Company has suspended theshipment of all but one of the products manufactured by theCompany and must comply with a consent decree with the Food andDrug Administration before approved products can be reintroducedto the market. In addition, the independent auditors noted of thesignificant negative impacts these actions may have on theCompany's operating results and cash flows, including, recurringlosses from operations, a shareholders' deficit, and negativeworking capital; the potential inability of the Company to raiseadditional capital, significant uncertainties related tolitigation and governmental inquiries; and debt covenantviolations.

The Company reported a net loss of $283.6 million on$152.2 million of net revenues for fiscal 2010, compared to a netloss of $313.6 million on $312.3 million of net revenue for fiscal2009.

The decrease in net revenues was a result of decreases in productsales due to the impact of the nationwide recalls the Companyinitiated in the fourth quarter of fiscal year 2009 and thesuspensions of shipments the Company initiated of all approvedtablet-form products in December 2008 and all other drug productsin January 2009. The decrease was partially offset by revenuegenerated from the sale of certain products not manufactured bythe Company under the Distribution Agreement with Purdue PharmaL.P.

Operating loss was $312.7 million and $351.5 million in fiscal2010 and 2009, respectively. Operating expenses in fiscal year2010 decreased $66.4 million or 15.4%, as compared to fiscal year2009.

The Company's balance sheet at March 31, 2010, showed$358.6 million in total assets, $497.7 million in totalliabilities, and a stockholders' deficit of of $139.1 million.

Discontinuation of Manufacturing and Distribution; Product Recalls; and the FDA Consent Decree

In May 2008, the Company received two reports of an oversizedmorphine sulfate extended-release tablet in commercialdistribution. Following an investigation by the Company into thepossible causes of any such oversized tablets and the likelihoodthat additional lots of morphine sulfate extended-release tabletsor other products might contain oversized tablets, the Companyinstituted changes in its manufacturing processes to address theidentified causes and to prevent any oversized tablets fromentering commercial distribution.

In June 2008, the Company's wholly-owned subsidiary ETHEXCorporation initiated voluntary recalls of morphine sulfate 30-mgand 60-mg extended-release tablets. On October 15, 2008, ETHEXcommenced a voluntary recall of three specific lots ofdextroamphetamine sulfate 5-mg tablets as a precaution due to thepossible presence of oversized tablets. On November 7, 2008,ETHEX announced a voluntary recall to the consumer level ofmultiple lots of five generic products of varying strengths as aprecaution due to the potential presence of oversized tablets. OnNovember 10, 2008, ETHEX initiated a voluntary recall of multiplelots of 18 generic/non-branded products to the retail level as aprecaution due to the possible presence of oversized tablets.

On December 15, 2008, the FDA began an inspection of the Company'sfacilities.

On December 19, 2008, the Company voluntarily suspended allshipments of its FDA approved drug products in tablet form andcommenced a voluntary nationwide single production lot recall ofone of its pain management drugs.

Effective January 22, 2009, the Company voluntarily suspended themanufacturing and shipment of the remainder of its products,except for three products the Company distributes but does notmanufacture and which does not generate a significant amount ofrevenue.

On January 28, 2009, the Company initiated a nationwide voluntaryrecall of products manufactured or packaged at KV facilities,affecting most of the Company's products. The recall wassubsequently expanded on February 3, 2009. This recall affectedmultiple lots of over 150 branded and generic/non-brandedproducts.

On March 2, 2009, the Company entered into a consent decree withthe FDA regarding its drug manufacturing and distribution. Theconsent decree was entered by the U.S. District Court, EasternDistrict of Missouri, Eastern Division on March 6, 2009, andcontinues for a period of six years following satisfaction ofcertain obligations contained in the consent decree after whichthe Company may petition the Court for relief from the consentdecree. As part of the consent decree, the Company agreed not todirectly or indirectly do or cause the manufacture, processing,packing, labeling, holding, introduction or delivery forintroduction into interstate commerce at or from any of itsfacilities of any drug, until the Company has satisfied certainrequirements designed to demonstrate compliance with the FDA'scurrent good manufacturing practice regulations. The Company alsoagreed not to distribute its products that are not FDA approved,including its prenatal vitamins and hematinic products, unless theCompany obtains FDA approval for such products through the FDA'sANDA or NDA processes.

On August 13, 2009, the final work plan, as part of the measuresset forth in the consent decree, with all requested changes, wassubmitted to and accepted by the FDA.

During the week of August 16, 2010, FDA conducted its owninspection of the Company's facilities, systems and processes asoutlined in the consent decree and found no adverse findings. OnSeptember 8, 2010, the Company received notification from the FDAof approval to ship into the marketplace the first productapproved under the consent decree, i.e., Potassium Chloride ERCapsule.

The Company is continuing to prepare other products for FDAinspection and does not expect to resume shipping other productsuntil the first quarter of calendar year 2011, at the earliest.

Plea Agreement with the U.S. Department of Justice

As previously disclosed in the Company's annual report on Form10-K for fiscal year 2009, the Company entered into a pleaagreement with the Office of the United States Attorney for theEastern District of Missouri and the Office of Consumer Litigationof the United States Department of Justice, pursuant to whichETHEX Corporation pleaded guilty to two felony counts, eachstemming from the failure to make and submit a field alert reportto the FDA in September 2008 regarding the discovery of certainundistributed tablets that failed to meet product specifications.

Pursuant to the plea agreement, ETHEX agreed to pay a criminalfine in the amount of $23.4 million in four installments. Thefirst installment, in the amount of $2.3 million, was due and paidwithin 10 days of sentencing, which also took place on March 2,2010.

ETHEX also agreed to pay, within 10 days of sentencing,restitution to the Medicare and the Medicaid programs in theamounts of $1.8 million and $600,00, respectively. In addition tothe fine and restitution, ETHEX agreed not to contest anadministrative forfeiture in the amount of $1.8 million, which waspayable and paid within 45 days after sentencing and whichsatisfied any and all forfeiture obligations ETHEX may have as aresult of the guilty plea. In total, ETHEX agreed to pay fines,restitution and forfeiture in the aggregate amount of$27.6 million.

In exchange for the voluntary guilty plea, the Department ofJustice agreed that no further federal prosecution will be broughtin the Eastern District of Missouri against ETHEX, KV and Ther-Rxregarding allegations of the misbranding and adulteration of anyoversized tablets of drugs manufactured by the Company, and thefailure to file required reports regarding these drugs andpatients' use of these drugs with the FDA, during the periodcommencing on January 1, 2008, through December 31, 2008.

In connection with the guilty plea by ETHEX, ETHEX was expected tobe excluded from participation in federal healthcare programs, andin connection with the previously anticipated exclusion of ETHEXfrom participation in federal healthcare programs, the Companyceased operations of ETHEX on March 2, 2010. On November 15,2010, the Company entered into a divestiture agreement with theU.S. Department of Health and Human Services ("HHS OIG") underwhich the Company agreed to sell the assets and operations ofETHEX to unrelated third parties prior to April 28, 2011, and tofile articles of dissolution with respect to ETHEX under Missourilaw by that date. Following the filing, ETHEX may not engage inany new business other than winding up its operations and willengage in a process provided under Missouri law to identify andresolve its liabilities over at least a two-year period. Underthe terms of the agreement, HHS OIG agreed not to exclude ETHEXfrom federal healthcare programs until April 28, 2011, and, uponcompletion of the sale of the ETHEX assets and of the filing ofthe articles of dissolution of ETHEX, the agreement willterminate. ETHEX filed its articles of dissolution onDecember 15, 2010, and ETHEX no longer has any ongoing assets oroperations other than those required to conclude the winding upprocess under Missouri law.

On March 2, 2009, the Company entered into a consent decree withthe FDA regarding the Company's drug manufacturing anddistribution, pursuant to which the Company agreed not to directlyor indirectly do or cause the manufacture, processing, packing,labeling, holding, introduction or delivery for introduction intointerstate commerce at or from any of its facilities of any drug,until the Company has satisfied certain requirements designed todemonstrate compliance with the FDA's current good manufacturingpractice regulations.

After a successful FDA inspection of the Company's facilitiesduring the week of August 16, 2010, the Company received onSeptember 8, 2010, notification from the FDA of approval to shipinto the marketplace the first product approved under the consentdecree, i.e., Potassium Chloride ER Capsule. The Company iscontinuing to prepare other products for FDA inspection.

LABOPHARM INC: Receives Minimum Bid Price Requirement Notice------------------------------------------------------------Labopharm Inc. received notice from the Listings QualificationsDepartment of The Nasdaq Stock Market that the closing bid priceof the Company's common shares was below the minimum requirementof US$1.00 per share for 30 consecutive business days and theCompany was therefore not in compliance with Nasdaq Listing Rules.

The notification has no impact at this time on the listing ofLabopharm's common shares on The Nasdaq Capital Market andLabopharm's common shares will continue to trade on The NasdaqCapital Market under the symbol "DDSS". The notification alsohas no impact on the listing of the Company's common shares on theToronto Stock Exchange and the Company's common shares willcontinue to trade on the Toronto Stock Exchange under the symbol"DDS".

Labopharm has been provided a period of 180 calendar days, oruntil June 27, 2011, to regain compliance with the minimum closingbid price requirement. Labopharm can regain compliance if theclosing bid price of its common shares is US$1.00 or higher for aminimum of ten consecutive business days during the complianceperiod.

If Labopharm does not re-establish compliance by June 27, 2011,Nasdaq will provide written notification to the Company that itscommon shares are subject to delisting. At that time, the Companymay be eligible for an additional 180 calendar day complianceperiod if it meets the initial listing standards, with theexception of minimum closing bid price, for The Nasdaq CapitalMarket, and it provides a written plan to re-establish complianceduring the second grace period.

About Labopharm Inc.

Labopharm is an emerging leader in optimizing the performance ofexisting small molecule drugs using its proprietary controlled-release technologies. The Company's commercialized productsinclude OLEPTRO(TM) a once-daily antidepressant marketed in theU.S. and a unique once-daily formulation of tramadol marketed in19 countries, including the U.S. Labopharm's third product, atwice-daily formulation of tramadol-acetaminophen, is approved inmultiple countries in Europe with launches anticipated in late2011. The Company also has a pipeline of follow-on products inboth pre-clinical and clinical development. Labopharm isheadquartered in Laval, Canada with U.S. offices in Princeton, NewJersey.

The Company's balance sheet at December 31, 2009, showedUS$4.384 billion in assets, US$3.507 billion of liabilities, andUS$876.9 million of stockholders' equity.

Going Concern Doubt

As reported in the Troubled Company Reporter-Asia Pacific onJuly 6, 2010, LDK Solar said in its annual report on Form 20-F forthe year ended December 31, 2009, that at yearend, the Company hada working capital deficit of US$833.6 million and an accumulateddeficit of US$32.8 million. The Company said, "During theyear ended December 31, 2009, we incurred a net loss ofUS$234.2 million [attributable to LDK Solar Co., Ltd.shareholders]. As of December 31, 2009, we had cash and cashequivalents of US$384.8 million, most of which are held bysubsidiaries in China. Most of our short-term bank borrowings andcurrent installments of our long-term debt totaling US$978.6million are the obligations of these subsidiaries. We may also berequired by the holders of our convertible senior notes torepurchase all or a portion of such convertible senior notes withan aggregate principal amount of US$400.0 million on April 15,2011. These factors initially raised substantial doubt as to ourability to continue as a going concern. We are in need ofadditional funding to sustain our business as a going concern, andwe have formulated a plan to address our liquidity problem."

The Company cautioned that "we cannot assure you that we willsuccessfully execute our liquidity plan. If we do notsuccessfully execute such plan, we may have substantial doubt asto our ability to continue as a going concern."

LIONS GATE: Frank Giustra Owns 12,500 Common Shares---------------------------------------------------In a Form 3 filing with the Securities and Exchange Commission onDecember 22, 2010, Frank Giustra, a director at Lions GateEntertainment Corp., disclosed that he beneficially owns 12,500common shares of the company. The 12,500 restricted share unitswere granted by the Company, payable upon vesting in an equalnumber of common shares of the Company, that are scheduled to vestin three equal installments beginning December 14, 2011.

About Lions Gate

British Columbia-domiciled and Santa Monica, California-headquartered Lions Gate is an independent producer anddistributor of motion pictures, home entertainment, televisionprogramming and animation worldwide and holds a majority interestin the pioneering CinemaNow VOD business.

Lions Gate Entertainment Corp. reported total assets of$1,592,874,000 against total liabilities of $1,594,454,000,resulting in total deficiency of $1,580,000 as of June 30, 2010.

Lions Gate carries 'B-' issuer credit ratings from Standard &Poor's.

LOGIC DEVICES: Recurring Losses Prompt Going Concern Doubt----------------------------------------------------------LOGIC Devices Incorporated filed on December 27, 2010, its annualreport on Form 10-K for the fiscal year ended September 30, 2010.

Hein & Associates LLP, in Irvine, Calif., expressed substantialdoubt about the Company's ability to continue as a going concern.The independent auditors noted that the Company has sufferedrecurring losses from operations and requires additional funds tomaintain its operations.

The Company reported a net loss of $1,084,500 for fiscal 2010,compared with a net loss of $811,300 for fiscal 2009. Netrevenues decreased $819,900, or $27%, from $3,013,200 in fiscal2009 to $2,193,300 in fiscal 2010..

The Company's balance sheet at September 30, 2010, showed$2,760,700 in total assets, $281,400 in total liabilities, andstockholders' equity of $2,479,300.

The musicians argued that the orchestra doesn't belong inbankruptcy court, and that management made the filing simply toget out of its collective bargaining agreement with the musicians,according to Business First.

Based in Louisville, Kentucky, The Louisville Orchestra, Inc.,filed for Chapter 11 bankruptcy protection on Dec. 3, 2010 (Bankr.W.D. Ken. Case No. 10-36321). Judge David T. Stosberg presidesover the case. Daniel T. Albers, Jr., Esq., Mark A. Robinson,Esq., and Robert Wagner, Esq., at Valenti Hanley & Robinson PLLC,represents the Debtor. The Debtor estimated both assets and debtsof between $1 million and $10 million in its petition.

LTAP US: Wells Fargo Seeks Relief From Bankruptcy Shield--------------------------------------------------------Wells Fargo Bank is seeking to lift the shield of bankruptcythat's protecting LTAP US LLLP from creditors like itself, arguingthat it is entitled to relief for its more than $230 million inclaims, Dow Jones' Small Cap reports.

According to the report, Wells Fargo filed a motion urging thebankruptcy court to lift the automatic stay protecting LTAP fromlawsuits and other creditor actions. In the motion, the reportrelates, Wells Fargo complained that the value of the collateralsecuring its claims -- the life insurance policies LTAP buys fromelderly customers -- faces an "imminent risk of destruction."

Wells Fargo, court papers show, pointed to LTAP's request to tapcurrently encumbered cash in order to pay premiums on the 410life-insurance policies for which the Atlanta company is currentlythe beneficiary, the report notes.

With $6 million in premium payments coming due on Jan. 9, and withLTAP's current cash level of $160,000, Wells Fargo is concernedthat the value of the policies will "evaporate" if the premiumsaren't timely paid, the report adds.

MARIA JUNKOVIC: Section 341(a) Meeting Scheduled for Feb. 2-----------------------------------------------------------The U.S. Trustee for Region 11 will convene a meeting of MariaJunkovic's creditors on February 2, 2011, at 1:30 p.m. Themeeting will be held at 219 South Dearborn, Office of the U.S.Trustee, 8th Floor, Room 802, Chicago, Illinois 60604.

This is the first meeting of creditors required under Section341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.

All creditors are invited, but not required, to attend. ThisMeeting of Creditors offers the one opportunity in a bankruptcyproceeding for creditors to question a responsible office of theDebtor under oath about the company's financial affairs andoperations that would be of interest to the general body ofcreditors.

NAKNEK ELECTRIC: Can Access $300,200 of RUS Cash Collateral-----------------------------------------------------------The Hon. Donald MacDonald IV of the U.S. Bankruptcy Court for theDistrict of Alaska, in a third stipulated order, authorized NaknekElectric Association, Inc., to use up to $300,155 of cashcollateral and any other cash in its possession until April 29,2010.

The Debtor would use the cash collateral solely for the purpose ofpaying Debtor's Chapter 11 operating expenses.

As of the Petition Date, United States Department of Agriculture,Rural Utilities Service has a claim exceeding $3 million onobligations secured by the mortgage. The Debtor related that theaggregate amount of cash in its possession as of November 30, was$601,303.

As adequate protection for any diminution in value of the lenders'collateral, the Debtors will grant RUS replacement liens on andsecurity interests in substantially all of Debtor's then-existingand after-acquired assets.

As further adequate protection, the Debtor will make an adequateprotection payments of $60,100 by December 31, 2010, $18,000 byJanuary 31, 2011, $16,000 by February 28, $60,100 by March 31,and $60,100 by April 30, to RUS.

About Naknek Electric Association

Naknek, Alaska-based Naknek Electric Association, Inc., operatesan electric utility generation plant that is run by diesel poweredgenerators. It provides electricity to 591 members of thecooperative. It also is developing a geothermal well.

Naknek, Alaska-based Naknek Electric Association, Inc., operatesan electric utility generation plant that is run by diesel poweredgenerators. It provides electricity to 591 members of thecooperative. It also is developing a geothermal well.

NAKNEK ELECTRIC: Files Schedules of Assets and Liabilities----------------------------------------------------------Naknek Electric Association, Inc., filed with the U.S. BankruptcyCourt for the District of Alaska its schedules of assets andliabilities. A full-text copy of the Schedules is available forfree at http://bankrupt.com/misc/NaknekElectric_SAL.pdf

Naknek, Alaska-based Naknek Electric Association, Inc., operatesan electric utility generation plant that is run by diesel poweredgenerators. It provides electricity to 591 members of thecooperative. It also is developing a geothermal well.

NAKNEK ELECTRIC: U.S. Trustee Forms 7-Member Creditors' Committee-----------------------------------------------------------------Robert D. Miller, the U.S. Trustee for Region 18, appointed sevenmembers to the official committee of unsecured creditors in theChapter 11 case of Naknek Electric Association, Inc.

Official creditors' committees have the right to employ legal andaccounting professionals and financial advisors, at the Debtor'sexpense. They may investigate the Debtor's business and financialaffairs. Importantly, official committees serve as fiduciaries tothe general population of creditors they represent. Thosecommittees will also attempt to negotiate the terms of aconsensual Chapter 11 plan -- almost always subject to the termsof strict confidentiality agreements with the Debtors and othercore parties-in-interest. If negotiations break down, theCommittee may ask the Bankruptcy Court to replace management withan independent trustee. If the Committee concludes reorganizationof the Debtor is impossible, the Committee will urge theBankruptcy Court to convert the Chapter 11 cases to a liquidationproceeding.

Naknek, Alaska-based Naknek Electric Association, Inc., operatesan electric utility generation plant that is run by diesel poweredgenerators. It provides electricity to 591 members of thecooperative. It also is developing a geothermal well.

NCO GROUP: S&P Junks Counterparty Credit Rating From 'B-'---------------------------------------------------------Standard & Poor's Ratings Services said that it lowered its long-term counterparty credit rating on NCO Group Inc. to 'CCC+' from'B-'. S&P also lowered its senior secured and unsecured debtratings on NCO to 'CCC+' and 'CCC-', respectively, from 'B-' and'CCC'. The outlook is negative.

"The downgrade reflects its view that it will be difficult for NCOto meet its current interest-coverage covenant through year-end2010 given weaker-than-expected third-quarter financial results,"said Standard & Poor's credit analyst Kevin Cole. EBITDAgeneration in the third quarter showed no improvement on second-quarter results. S&P does not anticipate results improvingmaterially in the near term. As a result, S&P believes NCO willbe forced to seek covenant relief, by either renegotiating theaffected covenants or -- in a worst case scenario -- restructuringthe debt.

S&P calculates that EBITDA levels fell roughly 30% year over yearin the first three quarters of 2010. Fourth-quarter EBITDA wouldneed to grow nearly 50% from the third quarter for NCO to maintainits interest-coverage ratio above the covenant-specified minimumof 1.8x -- an outcome S&P considers unlikely. In light of adifficult collections environment and weak customer service callvolumes, S&P believes NCO's near-term results may show littleimprovement, despite the company's efforts to lower expendituresand earn additional incremental business from existing clients.

The negative outlook reflects the potential for significantpressure on debt covenants given worse-than-expected financialperformance. If this or other circumstances cause NCO tounderperform further, relative to its expectations, S&P will lowerthe rating. If NCO can negotiate additional covenant relief, orif results show sustained improvement, S&P could revise theoutlook to stable.

NEXSTAR BROADCASTING: T. Yosef-Or Does Not Own Any Securities-------------------------------------------------------------In a Form 3 filing with the Securities and Exchange Commission onDecember 28, 2010, Tomer Yosef-Or disclosed that he does not ownany securities of Nexstar Broadcasting Group Inc. Mr. Yosef-Orwas elected to the Board of Directors of Nexstar BroadcastingGroup, Inc. on January 21, 2010, as announced on Form 8-K, filedFebruary 8, 2010. Due to an inadvertent administrative error, hisForm 3 filing was late.

About Nexstar Broadcasting Group

Irving, Texas-based Nexstar Broadcasting Group Inc. currentlyowns, operates, programs or provides sales and other services to62 television stations in 34 markets in the states of Illinois,Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania,Louisiana, Arkansas, Alabama, New York, Rhode Island, Utah andFlorida. Nexstar's television station group includes affiliatesof NBC, CBS, ABC, FOX, MyNetworkTV and The CW and reachesapproximately 13 million viewers or approximately 11.5% of allU.S. television households.

* * *

As reported by the Troubled Company Reporter on August 30, 2010,Standard & Poor's Ratings Services raised its corporate creditrating on Nexstar Broadcasting Group to 'B' from 'B-'. The ratingoutlook is stable.

"The 'B' corporate credit rating reflects S&P's expectation thatNexstar's core ad revenue will continue growing modestly in 2010and 2011," said Standard & Poor's credit analyst Deborah Kinzer.The EBITDA growth resulting from the rebound in core advertising,combined with political ad revenue from the 2010 midtermelections, should, in S&P's view, enable Nexstar to reduce itsleverage significantly by the end of the year.

The Debtor did not file a list of its largest unsecured creditorstogether with its petition.

The petition was signed by Nir Tzanani, president.

NYC OFF-TRACK: Health Insurance Temporarily Reinstated------------------------------------------------------Brendan Scott, writing for The New York Post, reports that thehealth insurance for some 900 former Off-Track Betting Corp.employees was temporarily reinstated on December 28 after a judgefroze city efforts to cut off benefits to retirees of the defunctbookmaking agency.

According to the Post, District Council 37, which represents manyof the retirees, said Supreme Court Judge Martin Shulman issuedthe restraining order last Monday in Manhattan pending furtherhearings. The city argues it isn't obligated to pay the healthbenefits because the agency is no longer contributing to theinsurance.

As reported in the Dec. 10, 2010 edition of the Troubled CompanyReporter, NYC OTB began closing down December 7 after the stateSenate voted down legislation for a bailout to be effected througha Chapter 9 reorganization plan. The New York Times reported thatabout 50 parlors around the city were shuttered and some 1,000employees lost their jobs.

About NYC OTB

New York City Off-Track Betting Corporation is a public benefitcorporation, which operates an off-track pari-mutuel bettingsystem on thoroughbred and harness horse races held at all 11 racetracks located in New York State and certain race tracks locatedoutside of the State. Since NYC OTB's inception in 1971, it hasmade payments of nearly $2 billion to the State horse racingindustry, more than $1.4 billion to New York City and nearly$600 million to the State. In 2008 alone, NYC OTB made statutorycontributions in an aggregate amount of $128.6 million to theState horse racing industry, the State, the City, and other localmunicipalities. NYC OTB's operations are regulated by the State.

At September 30, 2009, NYC OTB had $18,468,147 in total assetsagainst $74,912,742 in total current liabilities, $6,982,887 inlong-term liabilities, and $201,020,000 in long-term postemployment benefits.

OMNIRELIANT HOLDINGS: Inks Plan of Merger With Infusion Brands--------------------------------------------------------------On December 16, 2010, as part of its quasi-reorganization in orderto change its business model from that of an acquisition strategyto a singular operating model as a consumer products company whichbuilds and markets brands internationally through direct-to-consumers channels of distribution, OmniReliant Holdings, Inc.entered into an agreement and plan of merger with Infusion BrandsInternational, Inc., a Nevada corporation and the Company'swholly-owned subsidiary. Pursuant to the terms and subject to theconditions set forth in the Merger Agreement, the Company mergedwith and into Infusion Brands International, Inc., solely toeffect a name change of the Company.

The Company will continue as the surviving corporation with thesurviving corporation changing its name to Infusion BrandsInternational, Inc.. The Company's Board of Directors approvedthe Merger and the Merger Agreement. On December 16, 2010, theCompany filed Articles of Merger with the Secretary of State ofNevada. Pursuant to Chapter 92A.180 of the Nevada RevisedStatutes, Shareholder approval was not required for the Merger andName Change. Copies of the Merger Agreement and Articles ofMerger are filed herewith. In conjunction with the Name Change,the Company has applied for a voluntary symbol change with theFinancial Industry Regulatory Authority.

The foregoing Name Change and symbol change will not be effecteduntil the Company receives approval from FINRA.

As part of its Reorganization, on December 13, 2010, the Companyentered into a stock purchase agreement with Webcarnation LLCpursuant to which the Company sold its membership interest inWebcarnation back to Webcarnation, in consideration for therelease of the Company by Webcarnation from any obligation topurchase an additional promissory note in the principal amount of$50,000, pursuant to the terms of that certain subscriptionagreement dated June 2, 2010, by and between the Company andWebcarnation.

Pursuant to the terms of the Original Webcarnation Agreement, theCompany purchased an initial promissory note in the principalamount of $50,000. As further consideration for the sale of theMembership Interests, the Company and Webcarnation agreed to amendthe Initial Note in order to (i) amend the Maturity Date to theearlier of (a) December 31, 2012 or (b) the date Webcarnationconsummates the sale of debt securities (including any lines ofcredit) or membership interest or other securities in a singletransaction or series of related transactions resulting in thegross proceeds of $250,000; (ii) amend the annual interest rate ofthe Initial Note to 6% and (iii) provide for a payment schedulefor the payback of the Original Note, to commence on July 1, 2011,pursuant to which Webcarnation will pay the Company $2,000 permonth until the principal and interest due under the Initial Noteis paid in full.

On December 16, 2010, the Company entered into a stock purchaseagreement with Jesus Diaz and Oscar Rodriguez pursuant to which itsold 100% of the issued and outstanding common stock of its whollyowned subsidiary, OmniReliant Acquisition Sub, Inc. to Mr. Diazand Mr. Rodriguez in consideration for the cancellation of Mr.Diaz's and Mr. Rodriguez's respective employment agreements withOmniReliant Acquisition Sub, Inc.

The Consumer Products segment has historically been engaged inidentifying affordable and demonstrable products to marketprincipally to domestic customers through direct to consumerchannels such as television infomercials, live shopping networks,and ecommerce channels. The newly formed Fashion Goods segment isengaged in the business of sourcing and distributing designerfashion goods and accessories on a discounted basis to both theBusiness-to-Business ("B2B") wholesale and Business-to-Consumer("B2C") retail channels of distribution. The newly formedeCommerce segment is engaged in retail and wholesale distributionof specific products and types or categories of products that donot fit into the Company's Consumer Products or Fashion Goodssegments.

The Company's balance sheet as of September 30, 2010, showed$10.9 million in total assets, $15.0 million in totalliabilities, $8.6 million in redeemable preferred stock, and astockholders' deficit of $12.6 million.

As reported in the Troubled Company Reporter on October 18, 2010,Meeks International LLC, in Tampa, Florida, expressed substantialdoubt about the Company's ability to continue as a going concern,following the Company's results for the fiscal yer ended June 30,2010. The independent auditors noted that the Company hasincurred significant recurring losses from operations and isdependent on outside sources of financing for continuation of itsoperations.

-- the Asbestos Trust will withdraw its request to reopen the Reorganized Debtors' Chapter 11 cases;

-- the Reorganized Debtors consent to the Trust's withdrawal of the case re-opening request; and

-- each party will bear its own costs concerning the matter.

As reported in the Troubled Company Reporter on November 4, 2010,Owens Corning/Fibreboard Asbestos Personal Injury Trust was askingJudge Judith K. Fitzgerald of the United States Bankruptcy Courtfor the District of Delaware to:

(a) reopen the Chapter 11 case of Owens Corning to allow it to prosecute a Verified Complaint for Declaratory and Injunctive Relief or, in the alternative;

(b) permit it to prosecute the Complaint without reopening the case.

Section 305(b) of the Bankruptcy Code provides that "[a] case maybe reopened in the court in which that case was closed toadminister assets, to accord relief to the debtor, or for othercause." Rule 5010 of the Federal Rules of Bankruptcy Procedureprovides, inter alia, that "[a] case may be reopened on motion ofthe debtor or other party in interest pursuant to Section 350(b)of the Bankruptcy Code."

In the Motion to Reopen, Bernard G. Conaway, Esq., at Campbell &Levine LLC, in Wilmington, Delaware, said that over the pastseveral months, and in separate actions around the country,insurers and certain asbestos defendants that have recently filedfor Chapter 11 protection have launched massive and intrusivediscovery efforts against asbestos personal injury asbestostrusts, including the OC Asbestos Trust, seeking vast amounts ofinformation concerning claims submissions made by claimants tothose trusts. Some of the discovery requests seek the completerecords for hundreds of thousands of claimants, demanding everyscrap of electronic information maintained by dozens of asbestospersonal injury trusts, he said. Mr. Conaway elaborated thatthrough the Complaint it plans to commence, the OC Asbestos Trustseeks to resolve in one jurisdiction, in one action, (1) theproper scope of discovery of their claimant information and datathat certain parties have sought, and (2) the protections that theTrust may properly and consistently invoke in the event of futurediscovery efforts.

In response, Owens Corning Sales LLC and its reorganized debtoraffiliates clarified that they take no position as to theadversary proceeding commenced in relation to several AsbestosPersonal Injury Trusts' request to reopen these Chapter 11 cases.The Reorganized Debtors aver that they are not parties to theAdversary Proceeding.

Nevertheless, the Reorganized Debtors pointed out that theystrongly oppose the reopening of any of their Chapter 11 cases.Mark Minuti, Esq., at Saul Ewing LLP, in Wilmington, Delaware,relates that the last of the Reorganized Debtors' cases was onlyrecently closed, after a prolonged effort spanning 10 years. Theclosing of the Reorganized Debtors' cases, he notes, was a majormilestone for the Reorganized Debtors in terms of internal moraleand "closure."

"Reopening one or more of the Reorganized Debtors' cases would bea significant blow to internal morale and a potential distractionto ongoing business operations," Mr. Minuti contends.

About Owens Corning

Headquartered in Toledo, Ohio, Owens Corning fka Owens Corning(Reorganized) Inc. (NYSE: OC) -- http://www.owenscorning.com/-- is a producer of residential and commercial building materials andglass fiber reinforcements, and other similar materials forcomposite systems. The company has operations in 26 countries.

On September 28, 2006, the Honorable John P. Fullam, Sr., of theU.S. District Court for the Eastern District of Pennsylvaniaaffirmed the order of Honorable Judith Fitzgerald of the U.S.Bankruptcy Court for the District of Delaware confirming OwensCorning's Sixth Amended Plan of Reorganization. The Plan tookeffect on October 31, 2006, marking the company's emergence fromChapter 11.

Reorganized Owens sought on July 25, 2008, from the DelawareBankruptcy Court a final decree closing the Chapter 11 cases of 17of its affiliates. Only the Chapter 11 case of Owens CorningSales, LLC, formerly known as Owens Corning, under Case No.00-03837 will remain open.

Garlock is a manufacturer of sealing products and filed abankruptcy petition on June 5, 2010 in the U.S. Bankruptcy Courtfor the Western District of North Carolina to seek a resolutionof pending and future asbestos personal injury claims against it.

As previously reported, each of the asbestos trusts in the casesof Owens Corning, ACandS Inc., Kaiser Aluminum Corporation, USGCorporation; the corresponding trust advisory committees of theTrusts; and Hon. Dean M. Trafelet (Ret.), as legal representativefor Future Claimants against the USG Asbestos Trust asked JudgeFitzgerald of the U.S. Bankruptcy Court for the District ofDelaware to enter a preliminary injunction barring thecontinuation of discovery against the Trusts and all discovery ofa similar nature until the Court has ruled on the issues raisedin the Trusts' Adversary Complaint.

The preliminary injunction request has been opposed by thesegroups:

* National Union Fire Insurance Company of Pittsburgh, PA and American Home Assurance Company;

* Specialty Products Holding Corp.; and

* Hartford Accident and Indemnity Company, First State Insurance Company, and New England Insurance Company.

Garlock now filed its own objection to the injunction request.In its objection, Garlock tells the Delaware Court that it hasbeen named as a defendant in the Asbestos PI Trusts' complaintbecause, like the other defendants, it has sought discovery fromthe PI Trusts.

Counsel to Garlock, Robert J. Denney, Esq., at Morris NicholsArsht & Tunnell LLP, in Wilmington, Delaware, argues that the PITrusts' request is extraordinarily ill-founded and the PI Trustscannot demonstrate any impending harm or irreparable harmrequired to obtain a preliminary injunction.

Mr. Dehney points out that the harm the PI Trusts fear is theobligation to produce the discovery to which the bankruptcy judgein North Carolina might conclude Garlock is entitled. "But thatdiscovery has not yet been authorized," he notes.

The availability of an alternative remedy, Mr. Dehney says,fatally undermines the request for preliminary injunctive relief.

In addition, Mr. Denney contends, the Preliminary Injunctionrequest is extraordinarily broad and would bar discovery in everycase other than an actual personal injury lawsuit brought by aclaimant.

"In sum, this lawsuit is nothing more than an ill-advised attempt-- likely tactical in nature -- to interfere with the orderlyadministration of Garlock's bankruptcy case," Mr. Denney argues.

Plaintiffs Withdraw Injunction Request for Specialty Products

The Plaintiffs have withdrawn their request for PreliminaryInjunction as it solely relates to Specialty Products HoldingCorp.

Parties Seek Case Dismissal

Garlock asks Judge Fitzgerald to dismiss the PI Trusts' AdversaryComplaint as it relates to itself.

On behalf of Garlock, Mr. Denney asserts that the DelawareBankruptcy Court lacks subject matter jurisdiction. He adds thatthe Complaint against Garlock should be dismissed pursuant to the"first-filed" rule of the Third Circuit because the adversaryproceeding as it relates to Garlock is "second-filed" and seeksthe determination of the same issues raised in Garlock's Chapter11 case.

Aside from Garlock, these parties also ask Judge Fitzgerald todismiss the Adversary Complaint for lack of subject matterjurisdiction:

-- National Union Fire Insurance Company of Pittsburgh, Pa., and American Home Assurance Company; and

-- Hartford Accident and Indemnity Company, First State Insurance Company and New England Insurance Company.

Plaintiffs Answer Call for Case Dismissal

Counsel to the Plaintiffs, Bernard Conaway, Esq., at Campbell &Levine LLC, in Wilmington, Delaware, maintains that the DelawareCourt has jurisdiction over the PI Trusts' Adversary Complaintfor three reasons:

-- It involves a claim that "arises in" a bankruptcy case;

-- It involves a claim that "relates to" a bankruptcy case; and

-- The Delaware Court has ancillary jurisdiction to enforce its own orders.

In a reply in support of the Preliminary Injunction request, Mr.Conaway points out that the PI Trust Plaintiffs have come to theDelaware Court seeking protection from the Defendants' improperattempts to obtain massive quantities of confidential settlementinformation through overbroad subpoenas to the Trusts and theiragents because of (i) the Delaware Court's prominent role in thehistory of asbestos personal injury trusts, its understanding ofthe trusts and their governing documents, and (ii) in light ofthe Delaware Court's continuing jurisdiction over the TrustPlaintiffs.

In light of the pending or threatened discovery requests, theDelaware Court should issue a preliminary injunction preventingdiscovery until it has had an opportunity to consider and rule onthe questions presented, Mr. Conaway asserts.

Ultimately, permanent injunctive and declaratory relief will benecessary to ensure that the Trust Plaintiffs are not turned intopublic clearinghouses of confidential claimant settlementinformation, and to preserve the balance achieved by Section524(g) and the plans confirmed by the Court, Mr. Conawayemphasizes.

Judge Fitzgerald further ruled that a docket entry be made ineach of the legal dockets for Adversary Proceeding Nos. 10-53721,10-53720, and 10-53712, which will be read as:

"An Order has been entered in this Adversary Proceeding directing the procedural consolidation of this Adversary Proceeding with Adversary Proceeding No. 10-53719 (JKF) (In re Kaiser Aluminum Corporation, et al., Case No. 02-10429 (JKF)). The docket for Adversary Proceeding No. 10-53719 (JKF) should be consulted for all matters affecting this adversary proceeding."

About Owens Corning

Headquartered in Toledo, Ohio, Owens Corning fka Owens Corning(Reorganized) Inc. (NYSE: OC) -- http://www.owenscorning.com/-- is a producer of residential and commercial building materials andglass fiber reinforcements, and other similar materials forcomposite systems. The company has operations in 26 countries.

On September 28, 2006, the Honorable John P. Fullam, Sr., of theU.S. District Court for the Eastern District of Pennsylvaniaaffirmed the order of Honorable Judith Fitzgerald of the U.S.Bankruptcy Court for the District of Delaware confirming OwensCorning's Sixth Amended Plan of Reorganization. The Plan tookeffect on October 31, 2006, marking the company's emergence fromChapter 11.

Reorganized Owens sought on July 25, 2008, from the DelawareBankruptcy Court a final decree closing the Chapter 11 cases of 17of its affiliates. Only the Chapter 11 case of Owens CorningSales, LLC, formerly known as Owens Corning, under Case No.00-03837 will remain open.

OWENS CORNING: James Williams Seeks Claims Payment--------------------------------------------------James Williams sent a letter to Bankruptcy Judge Judith Fitzgeraldasking for payment of an alleged claim that was previouslysubmitted against Owens Fiberglass Company.

Judge Fitzgerald wrote back and instructed The OwensCorning/Fibreboard Asbestos Personal Injury Trust to respond toMr. Willliams' letter. In addition, he instructed Mr. Williamsto address his concerns to the Trust in the future.

Trust Seeks Secrecy

In a separate filing, the PI Trust asks Judge Fitzgerald forauthority to file a response to Mr. Williams' letter and futureresponses to claimants under seal for in camera review by theCourt.

Marla R. Eskin, Esq., at Campbell & Levine LLC, in Wilmington,Delaware, relates that the responses, and any exhibits, containinformation that is protected from public disclosure by theconfidentiality provisions of the Asbestos Personal Injury TrustDistribution Procedures and also contains the Trust's commercialinformation with regards to analysis and opinions regarding theclaim at issue.

The TDP, in relevant part, provides that:

"All submissions to the PI Trust by a holder of a PI Trust Claim or a proof of claim form and materials related thereto shall be treated as made in the course of settlement discussions between the holder and the PI Trust and intended by the parties to be confidential and to be protected by all applicable stated and federal privileges, including, but not limited to, those directly applicable to settlement discussions. The PI Trust will preserve the confidentiality of such claimant submissions, and shall disclose the contents thereof only, with permission of the holder, to another trust established for the benefit of asbestos personal injury claimants pursuant to section 524(g) and/or section 105 of the Bankruptcy Code or other applicable law, to such other persons as authorized by the holder, or in response to a valid subpoena of such materials issued by the Bankruptcy Court... The PI Trust shall on its own initiative or upon request of the claimant in question take all necessary and appropriate steps to preserve said privilege before the Bankruptcy Court and before those courts having appellate jurisdiction related thereto."

Headquartered in Toledo, Ohio, Owens Corning fka Owens Corning(Reorganized) Inc. (NYSE: OC) -- http://www.owenscorning.com/-- is a producer of residential and commercial building materials andglass fiber reinforcements, and other similar materials forcomposite systems. The company has operations in 26 countries.

On September 28, 2006, the Honorable John P. Fullam, Sr., of theU.S. District Court for the Eastern District of Pennsylvaniaaffirmed the order of Honorable Judith Fitzgerald of the U.S.Bankruptcy Court for the District of Delaware confirming OwensCorning's Sixth Amended Plan of Reorganization. The Plan tookeffect on October 31, 2006, marking the company's emergence fromChapter 11.

Reorganized Owens sought on July 25, 2008, from the DelawareBankruptcy Court a final decree closing the Chapter 11 cases of 17of its affiliates. Only the Chapter 11 case of Owens CorningSales, LLC, formerly known as Owens Corning, under Case No.00-03837 will remain open.

OVERLAND STORAGE: Gets $3MM for Sale of Int. in Litigation Award----------------------------------------------------------------On December 21, 2010, Overland Storage Inc. entered into anagreement with various institutional investors to sell to theInvestors a minority ownership interest in any Litigation Awardarising from the Company's patent infringement lawsuit againstBDT AG, BDT Products, Inc., BDT-Solutions GmbH & Co. KG, BDTAutomation Technology (Zhuhai FTZ) Co., Ltd., BDT de Mexico,S. de R.L. de C.V., Dell Inc., and International Business MachinesCorporation and the Company's complaint for patent infringement inthe United States International Trade Commission against the samedefendants.

Pursuant to the terms of the Agreement, the Company receivedan aggregate of $3.0 million in cash in consideration for theOwnership Interest. The Company has also retained the right, inits sole discretion, to determine whether to settle the PatentLitigation and to determine the terms and conditions of any suchsettlement.

About Overland Storage

San Diego, Calif.-based Overland Storage, Inc. (Nasdaq: OVRL) --http://www.overlandstorage.com/-- is a global provider of data management and data protection solutions across the datalifecycle. By providing an integrated range of technologies andservices for primary, nearline, offline, archival and cloud datastorage, Overland makes it easy and cost effective to managedifferent tiers of information over time.

The Company's balance sheet at September 30, 2010, showed$39.27 million in total assets, $41.74 million in totalliabilities, and a stockholders' deficit of $2.47 million.

As reported in the Troubled Company Reporter on September 28,2010, Moss Adams LLP, in San Diego, Calif., expressed substantialdoubt about the Company's ability to continue as a going concern,following the Company's results for the fiscal year ended June 30,2010. The independent auditors noted of the Company's recurringlosses and negative operating cash flows.

PACIFIC ETHANOL: Gets 180-Day Extension by NASDAQ-------------------------------------------------Pacific Ethanol, Inc. received a letter, dated December 28, 2010,from The Nasdaq Stock Market notifying the company that it has metall of the requirements to be granted an additional 180 days, oruntil June 27, 2011, to regain compliance with the minimum $1.00bid price per share requirement for continued listing on TheNasdaq Capital Market.

The company may achieve compliance during the additional 180-dayperiod if the closing bid price of the company's common stock isat least $1.00 per share for a minimum of 10 consecutive businessdays before June 27, 2011. This notification has no immediateeffect on the company's listing on The Nasdaq Capital Market noron the trading of the company's common stock. If the company doesnot regain compliance during the second compliance period, Nasdaqwill provide written notice that the company's common stock willbe delisted from The Nasdaq Capital Market. In that event, thecompany may appeal such determination to a hearings panel. Therecan be no assurance that the company will be able to regaincompliance with Nasdaq's minimum bid price per share requirementfor continued listing on The Nasdaq Capital Market.

PCS EDVENTURES: Reaches Settlement with Navigators Insurance------------------------------------------------------------PCS Edventures has negotiated a settlement with NavigatorsInsurance. PCS previously announced in its public filings thatNavigators had chosen to deny coverage for the SEC investigationand the subsequent filing of a complaint against a former officer,a current officer and the Company. While the terms of thesettlement are confidential and the coverage negotiated has beenreduced, PCS is pleased that a significant portion of legal feesto date will be reimbursed and that a substantial part of thelegal costs going forward will also be paid by the InsuranceCompany.

About PCS Edventures!.com

Boise, Idaho-based PCS Edventures!.com, Inc. (OTC BB: PCSV) --http://www.edventures.com/-- is engaged in the design, development and delivery of educational learning labs bundled withrelated technologies and programs to the K-12 market worldwide.The PCS suite of products ranges from hands-on learning labs intechnology-rich topics in Science, Technology, Engineering andMath (STEM) to services rich in imagination, innovation, andcreativity. PCS programs operate in over 6,000 sites in all 50United States as well as in 17 countries internationally.

The Company's balance sheet as of September 30, 2010, showed$1.24 million in total assets, $517,307 in total liabilities, andstockholders' equity of $725,234.

According to the Troubled Company Report on Nov. 22, 2010, M&KCPAS PLLC expressed substantial doubt about the Company'sability to continue as a going concern, following its fiscal 2010results. The firm noted that the Company has suffered reoccurringlosses and negative cash flow from operations.

POINT BLANK: Wins Final Approval for $25 Million in Financing-------------------------------------------------------------A $25 million financing package arranged by unsecured creditorsand equity holders of Point Blank Solutions Inc. received finalapproval from a bankruptcy judge, giving the body-armor makeraccess to the money it needed to dodge a fast-track sale, DowJones' Small Cap reports.

According to the report, Judge Peter J. Walsh of the U.S.Bankruptcy Court in Wilmington, Del., signed off on a final orderpermitting Point Blank to draw on fresh funding provided byLonestar Partners LP, Privet Fund Management LLC and PrescottGroup Capital Management.

The report relates that the new lenders were tapped by theofficial committee of equity holders and the official committee ofunsecured creditors in the case to replace an initial $20 millionbankruptcy loan offered up by Steel Partners II LP earlier in theproceedings.

The financing from Steel Partners had been rapidly dwindling, andthe lender was pushing for a sale by the year's end and wasthreatening to terminate the company's access to cash before thestart of 2011, the report notes.

About Point Blank

Headquartered in Pompano Beach, Florida, Point Blank Solutions,Inc. -- http://www.pointblanksolutionsinc.com/-- designs and produces body armor systems for the U.S. Military, Government andlaw enforcement agencies, as well as select international markets.The Company maintains facilities in Pompano Beach, Florida, andJacksboro, Tennessee.

The Company's former chief executive officer and chief operatingofficer were convicted in September 2010 of orchestrating a$185 million fraud.

The U.S. Trustee has appointed an Official Committee of UnsecuredCreditors and a separate Official Committee of Equity SecurityHolders in the case. The Equity Committee has tapped MorrisonCohen LLP, and The Bayard, P.A., as counsel. Robert M. Hirsh,Esq., and Heike M. Vogel, Esq., at Arent Fox LLP, serve as counselto the Creditors Committee, and Frederick B. Rosner, Esq., andBrian L. Arban, Esq., at Messana Rosner & Stern LLP, serve as co-counsel.

NetDockets reports that the decision to file for chapter 11appears to be a response to an action in Pennsylvania state courtseeking to appoint a receiver for the development project, whichwas brought by one of the company's lenders, iStar Tara, LLC. Thereport relates a state court judge ordered the appointment of suchan examiner earlier but the order had not become final before thebankruptcy filing.

Philadelphia Rittenhouse Developer, L.P. is represented in thebankruptcy case by the law firm of Ciardi Ciardi & Astin, P.C.iStar Tara, LLC is represented in the chapter 11 case by the firmof Blank Rome LLP.

Philadelphia Rittenhouse Developer, L.P. is a joint venturebetween ARC Properties, Inc., based in Clifton, New Jersey, andPhiladelphia-based Wheeler Brothers Holdings, LLC. The companywas formed to develop 10 Rittenhouse Square, a 33-storycondominium building in Philadelphia. The building, which wasdesigned by Robert A.M. Stern Architects and built by TurnerConstruction, welcomed its first residents in October 2009 andfeatures amenities such as a chauffeur-driven 2010 Mercedes-BenzS550, according to the development's marketing website. Thebuilding includes "some of the largest penthouses in Philadelphia"which were expected to sell for as much as $15 million each,according to one news report.

The Company did not file a list of creditors together with itspetition.

The petition was signed by John M. Decker, manager.

POPULAR INC: Moody's Upgrades Preferred Stock Rating to 'B2'------------------------------------------------------------Moody's Investors Service upgraded Popular, Inc.'s non-cumulativepreferred stock rating to B2 from Ca. Following the ratingaction, the outlook on Popular and its subsidiaries remainsnegative. The rating agency noted that this action did not affectPopular's other ratings. Popular is the holding company of BancoPopular de Puerto Rico (unsupported bank financial strength ratingof D+, deposit ratings of Baa3/Prime-3).

Upgrades:

Issuer: Popular, Inc.

-- Non-Cumulative Preferred Stock, Upgraded to B2 from Ca

-- Multiple Seniority Shelf, Upgraded to a range of (P)B2 to (P)Ba1 from a range of (P)Ca to (P)Ba1

Outlook Actions:

Issuer: Popular, Inc.

-- Outlook, Changed To Negative From Negative(m)

Ratings Rationale

The upgrade of Popular's non-cumulative preferred stock ratingfollows the company's announcement that it will recommence payingpreferred dividends beginning December 31, 2010.

Popular announced the suspension of dividends on its non-cumulative preferred stock on June 8, 2009 in conjunction with itsoffer to exchange preferred stock and trust preferred securitiesfor common equity. Popular has missed 17 consecutive monthlydividend payments on the non-cumulative preferred stock that wasnot exchanged in the tender offer and which remains outstanding.

Popular has committed to its regulators that it will fund thepreferred dividend payments (approximately $3.7 million annually)by issuing common stock to employees under the company's existingretirement plans or, if necessary, by raising common equityexternally.

Moody's last rating action on Popular was on November 1, 2010 whenMoody's downgraded the deposit ratings of Popular's lead bank,Banco Popular de Puerto Rico, to Baa3/Prime-3 from Baa2/Prime-2.

Popular, Inc., is headquartered in Puerto Rico and reported assetsof $40.3 billion at September 30, 2010.

PRIUM LAKEWOOD: Has Access to Lender's Cash Coll. Until March 17----------------------------------------------------------------The Hon. Paul B. Snyder of the U.S. Bankruptcy Court for theWestern District of Washington authorized Prium Lakewood BuildingsLLC, to use the cash collateral of First Independent Bank.

As of the Petition Date, the Debtor is indebted to the bankpursuant to the note in the principal amount of $15,680,338 plusaccrued and unpaid interest, plus various amounts for attorneyfees, costs, and expenses.

The Debtor would use the cash collateral to fund its businessoperations until March 17, 2011, at 11:59 p.m.

As adequate protection for any diminution in value of the lenders'collateral, the Debtors will grant the bank replacement lien onall the personal property of the Debtor. The Debtor will also paythe bank all accrued and unpaid interest on the note from thePetition Date forward based on a non-defaulted interest rate.

PROTECTIVE PRODUCTS: Plan Confirmation Hearing Set for March 1--------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of Floridawill convene a hearing on March 1, 2011, at 1:30 p.m., prevailingEastern Time, to consider the confirmation of the Plan ofLiquidation for Protective Products of America, Inc., et al., asproposed by the Official Committee of Unsecured Creditors. Anyobjections to the Plan confirmation and ballots accepting torejecting the Plan are due February 18.

The Plan provides for, among other things, the collection of theDebtors' portion of certain income tax refunds, the pursuit ofcertain litigation, including but not limited to avoidanceactions and causes of action, and the distribution of the CreditorTrust Assets.

Under the Plan, holders of general unsecured claims will receive apro rata share of cash proceeds of the Creditor Trust Assets. Thecash available to pay allowed general unsecured claims is providedfrom the liquidation of all of the Creditor Trust Assets. TheCommittee estimates that the actual recovery for holders ofallowed general unsecured claims will be approximately $2,669,559.The Committee believes that the recovery pursuant to the Plan ismore than the recovery the holders would realize upon liquidationof these cases under chapter 7 of the Bankruptcy Code. TheCommittee also believes that the additional administrativeexpenses of a chapter 7 trustee and its professionals woulddilute the distribution available to general unsecured creditors.

The Debtors' Plan provides for the collection of the Debtorsportion of certain income tax refunds, the pursuit of litigationclaims, and the distribution of the foregoing together with theproceeds from the sale of substantially all of the Debtors assetsto Protective Products Enterprises, Inc., which closed on March 5,2010.

Under the Plan, holders of general unsecured claims will receive apro rata share of cash proceeds. The cash available to payallowed general unsecured claims is provided from the liquidationof all of the Debtors assets and the pursuit of litigation claims,if any. As of September 30, the Debtors had $971,586 in cash onhand. The Debtors estimate that they may receive up to anadditional $2.3 million from the purchaser on account of state andfederal tax refunds sold to the purchaser, although the actualamount of the tax refunds received, and therefore, the amount paidby the purchaser to the Debtors may be less. The funds will beavailable for distribution to the holders of allowed claims.

Sunrise, Florida-based Protective Products of America, Inc.,formerly known as Ceramic Protection Corporation --http://www.protectiveproductsofamerica.com/-- engages in the design, manufacture and marketing of advanced products used toprovide ballistic protection for personnel and vehicles in themilitary and law enforcement markets.

RANCHO MALIBU: Has Until March 3 to Propose Chapter 11 Plan-----------------------------------------------------------The U.S. Bankruptcy Court for the Central District of Californiaextended Rancho Malibu, LLC's exclusive periods to file andsolicit acceptances for the proposed chapter 11 plan untilMarch 3, 2011, and May 2, 2011, respectively.

As reported in the Troubled Company Reporter on October 22, 2010,the Debtors have liquidated substantially all of their assetsexcept for the Lake Margaret Property and certain Causes ofAction.

According to the Disclosure Statement, the Plan provides that onthe Effective Date, (1) each of the Debtors will be deemeddissolved; (2) the members of the board of directors of each ofthe Debtors aill be deemed to have resigned; (3) the Debtor willfund an account to pay the Convenience Class Claims; and (4) allremaining assets of the Debtors will be transferred to aLiquidation Trust for the benefit of the Debtors' creditors.

Treatment of Claims and Interests

Class 2 - Wells Fargo Bank's Secured Claim will be paid in fullfrom the proceeds from the sale of property owned by the Debtorson which Wells Fargo had a valid, enforceable lien.

Class 3 - Franklin Federal Savings and Loan Association ofRichmond's Secured Claim -- at the sole option of the LiquidationTrustee, (a) the legal equitable and contractual rights of theHolder of Allowed Class 3 Claims will be reinstated in full; (b)will receive in full satisfaction, settlement, and release of, andin exchange for, the Holder's Allowed Secured Claim, (c) other,less favorable treatment as is agreed upon by the Debtors or theLiquidation Trustee, as applicable, and the Holder of the claim.

Class 4 - Other secured claims -- at the sole option of theLiquidation Trustee, will receive (a) cash in the amount of theAllowed Secured Claim on the later of the Effective Date and thedate the Claim becomes an Allowed Claim, or as soon thereafter aspracticable; (b) the property of the estate which constitutescollateral for the Allowed Secured Claim on the later of theEffective Date and the date the claim becomes an Allowed Claim, oras soon thereafter as practicable, or (c) other, less favorabletreatment as is agreed upon by the Debtors or the LiquidationTrustee, as applicable, and the holder of the Claim

Class 5 - General unsecured creditors are projected to receive aninitial dividend of 1% to 5.5% on their Allowed Claim, withadditional distributions based upon the realizations of theLiquidation Trust in liquidating certain trust assets, includingthe Lake Margaret Property. The estimated initial distribution is$130,000 to $582,000.

Class 6 - Convenience Class Claims will be paid 20% of the AllowedClaim on the later of the Effective Date and the date the Claimbecomes an Allowed Claim.

ROTHSTEIN ROSENFELDT: Prosecutors, Trustees Fight for Dominance---------------------------------------------------------------Dow Jones' Small Cap reports that by the time Scott Rothstein wascharged with racketeering, money laundering and fraud on Dec. 1,2009, the South Florida attorney's white Lamborghini, 304 piecesof jewelry, 87-foot yacht and other assets were already in thehands of the federal government.

Creditors of Rothstein Rosenfeldt Adler PA, Rothstein's law firm,filed an involuntary bankruptcy petition against the firm the dayafter Rothstein's assets were seized, but they were too late,according to Dow Jones'. The report relates that the assetscreditors were counting on to pay their claims were gone.

Rothstein's creditors are the losers in what many bankruptcyattorneys say is an increasingly aggressive push by the federalgovernment to seize the spoils of business empires that havecollapsed in fraud, the report notes.

Scott Rothstein, co-founder of law firm Rothstein Rosenfeldt AdlerPA, has been suspected of running a $1.2 billion Ponzi scheme.U.S. authorities claimed in a civil forfeiture lawsuit filedNovember 9, 2009, that Mr. Rothstein, the firm's former chiefexecutive officer, sold investments in non-existent legalsettlements. Mr. Rothstein pleaded guilty to five counts ofconspiracy and wire fraud on January 27, 2010.

Creditors of Rothstein Rosenfeldt Adler signed a petition sendingthe Florida law firm to bankruptcy (Bankr. S.D. Fla. Case No.09-34791). The petitioners include Bonnie Barnett, who says shelost $500,000 in legal settlement investments; Aran Development,Inc., which said it lost $345,000 in investments; and tradecreditor Universal Legal, identified as a recruitment firm, whichsaid it is owed $7,800. The creditors alleged being owed moneyinvested in lawsuit settlements.

Herbert M. Stettin, the state-court appointed receiver forRothstein Rosenfeldt, was officially carried over as the Chapter11 trustee in the involuntary bankruptcy case.

This is the first meeting of creditors required under Section341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.

All creditors are invited, but not required, to attend. ThisMeeting of Creditors offers the one opportunity in a bankruptcyproceeding for creditors to question a responsible office of theDebtor under oath about the company's financial affairs andoperations that would be of interest to the general body ofcreditors.

SEXY HAIR: Plans to Complete Sale in Chapter 11-----------------------------------------------Kristen MacBeth at BankruptcyHome.com reports that Sexy HairConcepts filed for Chpater 11 to complete a sale that hadpreviously been impossible to close outside of bankruptcy court.Court papers indicated a potential buyer has been found forcompany, though they would not finalize the deal through aforeclosure sale.

The rating upgrade reflects Snoqualmie's diminished near-termdefault probability after it completed an amendment to its FF&E(Furniture, Furnishing & Equipment) loan agreement in December2010, alleviating Moody's previous concern on a potential covenantviolation should the amendment not be entered into on time. Theamendment which allows more flexible financial covenant levels(among other changes), along with the Authority's improvedoperating performance and liquidity position, lead us to believethat its debt structure has become manageable in the intermediateterm. "We now expect the Authority to generate positive free cashflow and maintain sufficient cushion under the financial covenantsin the next 12 months," explained Moody's lead analyst John Zhao.

The positive outlook considers the possibility of further ratingupgrade should Snoqualmie sustain operating performance at itscurrent level and continue to pay down debt that would result in adebt/EBITDA below 5.0x. Moody's views that the improvement in theAuthority's operating performance in the first nine months of 2010could be attributed to its more focused and effective marketingprogram, aided by the moderated unemployment rate in the Seattlemetro area as well as a less inclement weather condition in thefirst quarter of this year as compared to the prior year.

The Caa1 CFR reflects Snoqualmie's single asset profile, shortoperating history and inherent volatility in the operatingperformance that could be influenced by exogenous factors such asinclement weather conditions. The CFR also incorporates highcompetition in the primary market and all credit risks that arecommon to Native American gaming issuers. Positively, the ratingconsiders Snoqualmie Casino's favorable location and strongdemographic in its primary Seattle market that could somewhatoffset the negative impact on gaming spending due to weak economy.

Snoqualmie is an unincorporated instrumentality of the SnoqualmieIndian Tribe, formed in September 2006 to develop and operate allgaming and related businesses of the Tribe, including SnoqualmieCasino. Snoqualmie Casino is located 26 miles east of downtownSeattle, Washington.

STATION CASINOS: Proposes to Transfer All Accounts to Wells Fargo-----------------------------------------------------------------Station Casinos Inc. and its units ask the Court to amend itsfinal order authorizing them to (i) continue using their cashmanagement system, (ii) maintain existing bank accounts andbusiness forms, and (iii) maintain existing investment policy, toallow them to transfer substantially all of their bank accountsfrom Bank of America to Wells Fargo.

In furtherance of the Debtors' preparation for the implementationof the Confirmed Station Plan, the Debtors contemplatetransferring substantially all of the Bank Accounts now held atBank of America to Wells Fargo, relates Thomas R. Kreller, Esq.,at Milbank, Tweed, Hadley & McCloy LLP, in Los Angeles,California. According to Mr. Kreller, the structure andfunctionality of the cash management system to be established atWells Fargo will substantially replicate the cash managementsystem now in place at Bank of America so that the definitions anddescriptions of the SCI Cash Management System set forth in theCash Management Motion will remain accurate. He adds that the newaccounts at Wells Fargo will be subject to the existingprepetition and postpetition liens in favor of the PrepetitionAgent, which will be continuously perfected and remainuninterrupted.

Mr. Kreller notes that the Account Transfer will allow the Debtorsto reduce or eliminate the deposit requirements currently ineffect at Bank of America. The Account Transfer is, in part,intended to serve as a "dry run" that will allow the Debtors toensure the mechanics of the SCI Cash Management System can operatesmoothly and effectively at Wells Fargo prior to theEffective Date, he maintains.

"By allowing the Debtors the ability to replicate their existingaccount system in advance of the Effective Date, the relief soughtin this Motion will help ensure the Debtors' exit from the Chapter11 Cases is minimally disruptive from a cash managementperspective," says Mr. Kreller.

When the Wells Fargo Accounts are opened, the Debtors will file(i) a notice with the Court advising the Court that the AccountTransfer has occurred and the Wells Fargo Accounts have beenopened, (ii) an updated list of the Wells Fargo Accounts, and(iii) a proposed amendment to the order approving the CashManagement Motion then in effect. The amendment will confirm thatWells Fargo Accounts are subject to the continuously perfectedprepetition and postpetition liens of the Prepetition Agent andwill replace Exhibit 1 to the existing cash management order withan updated Exhibit 1.

The Debtors relate that they will enter into appropriatedocumentation in connection with the Wells Fargo Accounts,including account agreements, cash management agreements, andpledge and security agreements, and will also provide for cashdeposits to secure certain reimbursement obligations incurred inconnection with the Wells Fargo Accounts, as the Debtors mayreasonably determine to be necessary.

Thomas M. Friel, executive vice president, chief accountingofficer, and treasurer of Station Casinos, Inc., submitted withthe Court a declaration in support of the Motion to Amend. Hebelieves that the relief requested in the Motion to Amend isnecessary, essential and appropriate for enabling the Debtors'businesses to avoid the risks of an abrupt conversion to a newbanking system on the Effective Date, easing this aspect oftransition.

About Station Casinos

Station Casinos, Inc., is a gaming and entertainment company thatcurrently owns and operates nine major hotel/casino properties(one of which is 50% owned) and eight smaller casino properties(three of which are 50% owned), in the Las Vegas metropolitanarea, as well as manages a casino for a Native American tribe.

In its bankruptcy petition, Station Casinos said that it hadassets of $5,725,001,325 against debts of $6,482,637,653 as ofJune 30, 2009. About 4,378,929,997 of its liabilities constituteunsecured or subordinated debt securities.

STATION CASINOS: Agrees to Pay Fees & Expenses of Notes Trustees----------------------------------------------------------------Station Casinos Inc., and its debtor affiliates, the OfficialCommittee of Unsecured Creditors, and certain other parties-in-interest sought and obtained approval from the Court of astipulation authorizing the Debtors to pay fees and expensesincurred by Senior and Subordinated Notes Trustees as requiredunder confirmed Plan of Reorganization.

Pursuant to the Court-approved stipulation, the Debtors will payLaw Debenture Trust Company of New York, as the Senior NotesTrustee, $453,089 in full satisfaction of all fees and expenses,including legal fees and expenses. The Debtors will payWilmington Trust, N.A., as the Subordinated Notes Trustee,$245,524 in full satisfaction of all fees and expenses.

The Court entered, on August 27, 2010, its order confirming theJoint Chapter 11 plan for Station Casinos, Inc. and its debtoraffiliates. The Plan describes treatment of claims against DebtorSCI and provides for the payment of the reasonable and documentedfees and expenses of:

(a) the Senior Notes Trustee (Law Debenture Trust Company of New York) for the two Senior Notes Indentures; and

Station Casinos, Inc., is a gaming and entertainment company thatcurrently owns and operates nine major hotel/casino properties(one of which is 50% owned) and eight smaller casino properties(three of which are 50% owned), in the Las Vegas metropolitanarea, as well as manages a casino for a Native American tribe.

In its bankruptcy petition, Station Casinos said that it hadassets of $5,725,001,325 against debts of $6,482,637,653 as ofJune 30, 2009. About 4,378,929,997 of its liabilities constituteunsecured or subordinated debt securities.

STATION CASINOS: Snell & Wilmer Withdraws as GCR Counsel--------------------------------------------------------Snell & Wilmer LLP and Kasowitz, Benson, Torres & Friedman, LLP,seek the Bankruptcy Court's authority to withdraw as counsel ofrecord for GCR Gaming, LLC, because they have completed the scopeof their engagement.

GCR Gaming, LLC retained Kasowitz and Snell & Wilmer as Nevadacounsel to represent it in a dispute with GV Ranch Station, Inc.Specifically, Kasowitz and Snell were retained to represent GCRGaming regarding the contested matter and potential adversaryproceeding addressed by GCR Gaming's motion (1) to dismiss Chapter11 case, or, in the alternative, (2) relief from automatic stay toexercise applicable non-bankruptcy rights or (3) to compelrejection of Operating Agreement. The contested matter was takenoff calendar by the Court's May 27, 2010 order.

Snell and Kasowitz relate that they do not and never haverepresented GCR Gaming in the consolidated Station Casinosbankruptcies. Snell and Kasowitz seek to withdraw because thelimited reason for their retention -- litigating the contestedmatter and potential adversary proceedings addressed by the Motionto Dismiss -- no longer exists.

GCR Gaming says in court papers that it consents to the withdrawalof Snell and Kasowitz.

Key Reid, Esq., senior vice president and general counsel to TheGreenspun Corporation, filed with the Court a declaration insupport of the Withdrawal Motion.

About Station Casinos

Station Casinos, Inc., is a gaming and entertainment company thatcurrently owns and operates nine major hotel/casino properties(one of which is 50% owned) and eight smaller casino properties(three of which are 50% owned), in the Las Vegas metropolitanarea, as well as manages a casino for a Native American tribe.

In its bankruptcy petition, Station Casinos said that it hadassets of $5,725,001,325 against debts of $6,482,637,653 as ofJune 30, 2009. About 4,378,929,997 of its liabilities constituteunsecured or subordinated debt securities.

STILLWATER MINING: S&P Raises Issue-Level Rating to 'B+'--------------------------------------------------------Standard & Poor's Ratings Services said that it raised its issue-level rating on palladium and platinum mining operator StillwaterMining Co.'s senior convertible notes due 2028. S&P raised theissue-level rating to 'B+' from 'B'. The recovery rating on thenotes is revised to '2', indicating its expectation of substantial(70% to 90%) recovery in the event of a payment default, from '3'.

The corporate credit rating on Stillwater is 'B' and the outlookis stable.

The ratings on Stillwater reflect the company's very limitedoperating diversity, high cost profile, exposure to volatile metalprices, and dependence on the U.S. automotive sector. However,the company maintains a good liquidity position and creditmeasures. For the corporate credit rating rationale, see itssummary analysis on Stillwater published Dec. 29, 2010.

On January 4, 2008, Preston Strawberry loaned the sum of$2,500,000 to the Alleged Debtor. Preston Strawberry holds asecond position mortgage and note and TD Bank holds a firstposition mortgage and note covering the Debtor's property. HymanBiber controls and owns the Alleged Debtor. As security for theloan, Mr. Biber personally guaranteed the loan. As additionalsecurity for the loan, Mr. Biber inter alia provided PrestonStrawberry with a personal guaranty and a pledge of his interestin certain of the campground companies, which RV Companies arerelated to the Alleged Debtor. The Alleged Debtor defaulted onthe Loan on or about November 1, 2008, when it failed to make therequired payment due at that time. The Loan remains in defaultwith approximately $3,500,000, with interest, attorneys fees andother costs due and owing. The Alleged Debtor also defaulted onthe TD Loan.

Preston Strawberry says that the involuntary bankruptcy filingdoesn't comply with the jurisdictional requirements of Section303(b)(1) of the U.S. Bankruptcy Code. Preston Strawberry alsoclaims that ABCO Realty, LLC, made the filing in bad faith in andwith the collusion of Mr. Biber and the Alleged Debtor. PrestonStrawberry states, "This matter was commenced by one creditor,ABCO. ABCO holds a third mortgage and note covering most of theProperty. Presently, ABCO is an out-of-the-money mortgagee."

Preston Strawberry claims that while ABCO may have warranted thenumber of creditors by its involuntary petition, it has done sowith actual knowledge that the Alleged Debtor has more than twelvequalifying creditors. "Such knowledge has been gleaned fromsixteen months of litigating the State Court Action. Such actionhas involved numerous statements and submissions by Biber and theAlleged Debtor. Such statements and submissions directly regardthe finances of Biber and the Alleged Debtor including detailedlists of creditors and payments made to such creditors during thelitigation and receivership. ABCO has both reviewed and obtainedsuch information. Based on such information, ABCO knew, or at thevery least, should have known, that the Alleged Debtor has morethan twelve creditors," Preston Strawberry says.

According to Preston Strawberry, the Alleged Debtor is unable toeffectively reorganize. TD Bank commenced a foreclosure action instate court on September 4, 2009. The State Court Action wouldhave resulted in a judgment of strict foreclosure, save thefederal tax liens, which require under applicable state law thatthe Property be foreclosed by sale only. "Mr. Biber, the AllegedDebtor and the RV Companies in the past two years have simply beenunable to secure the financing necessary to avoid foreclosure andno legitimate prospects exist. The Property is not generating thefunds needed to adequately protect TD Bank, Preston and ABCO. Infact, without infusion of cash by TD Bank as part of thereceivership, there were insufficient funds to get to theFebruary 26, 2011 foreclosure date," Preston Strawberry states.

In addition, S&P raised its issue-level rating on the company'ssenior secured credit facility to 'B-' from 'D'. The recoveryrating on the senior secured debt remains unchanged at '3',indicating its expectation of meaningful (50% to 70%) recovery forlenders in the event of a payment default.

SuperMedia, the second-largest directory publisher in the U.S.,had total debt outstanding of $2.5 billion as of Sept. 30, 2010,and $2.2 billion after completing the recent tender offer.

S&P expects that deterioration in revenue and profitability couldlead to EBITDA coverage of interest expense in the mid-1x areaover the next two years and a weakening in the company's financialprofile despite a significant reduction in its total indebtednessas a result of the reorganization plan earlier this year.SuperMedia will no longer be permitted to make subpar repurchasesof its term debt under the terms of its recently amended creditagreement.

S&P continue to assess SuperMedia's business risk profile asvulnerable, principally because of the significant risks ofcontinued secular declines in the print directory sector. S&Pviews the financial risk profile as highly leveraged, based ontrends of rising leverage associated with the likely steadyerosion of cash flow.

On Dec. 21, 2010, SuperMedia used $185 million of cash to purchaseits term debt at a price of 70% of par, the maximum amountallowable under its recently amended credit agreement. After thetender, the company had $2.2 billion of debt, and its measure ofleverage marginally declined to 3.8x from just under 4.0x. S&Pviewed the recent subpar repurchase as tantamount to a default,based on the company's debt leverage and poor operating outlook asindications of financial distress.

In addition, the Company granted 10-year stock options pursuant tothe 2010 Plan to three officers to purchase the number of sharesset forth across from each such person's name. Each stock optionis exercisable $0.495 per share, the closing sale price of theCompany's common stock on the date of grant, and vest in 48 equalmonthly installments commencing on the first month anniversary ofthe grant date. Each stock option grant is evidenced by aseparate stock option agreement in the Company's standard form foruse under the 2010 Plan.

Hana Biosciences, Inc., is a South San Francisco, California-basedbiopharmaceutical company dedicated to developing andcommercializing new, differentiated cancer therapies designed toimprove and enable current standards of care. The Companycurrently has four product candidates in various stages ofdevelopment.

As reported in the Troubled Company Reporter on March 29, 2010,BDO Seidman, LLP, in San Francisco, expressed substantialdoubt about the Company's ability to continue as a going concern,following its 2009 results. The independent auditors noted thatthe Company has suffered recurring losses from operations and hasa net capital deficiency.

The Company's balance sheet as of June 30, 2010, showed$39.3 million in total assets, $36.6 million in total liabilities,$29.9 million in redeemable convertible preferred stock, and astockholders' deficit of $27.2 million.

TAMARACK RESORT: Credit Suisse Finds Fault Ski Resort Sale----------------------------------------------------------Tamarack Resort LLC's plan to sell its Idaho ski destination for$40 million has sparked the ire of lender Credit Suisse AG, whichinsists the proposed transaction is not in the best interest ofthe Company or its creditors, Dow Jones' Small Cap reports.

According to the report, Credit Suisse AG, Cayman Islands BranchTuesday expressed its dissatisfaction with Tamarack's bid to sellits assets to Green Valley Holdings LLC. Earlier this month, thereport notes, Tamarack entered into a letter of intent to completethe transaction with Green Valley -- or a higher bidder -- but hasnot yet sought approval for the sale process from the bankruptcycourt.

In court papers, Credit Suisse stressed that it was not involvedin the negotiation of the letter of intent, the report says.

The project's 27.5% owner, VPG Investments Inc., filed for Chapter11 reorganization in 2008, only to have the petition dismissed inOctober 2008 at the request of the secured creditor, CreditSuisse, Caymans Islands Branch. VPG was controlled by Mexicanbusinessman Alfredo Miguel Afif. Credit Suisse, the agent for thesecured lenders, characterized VPG's Chapter 11 case as "a classicexample of a bad faith filing" made "solely as a litigationtactic" to stop foreclosure.

Coulter & Justus, P.C., in Knoxville, Tenn., expressed substantialdoubt about the Company's ability to continue as a going concern.The independent auditors noted that the Company has sufferedrecurring losses from operations and has a net capital deficiencyin addition to a working capital deficiency.

The Company reported net income of $1,972,838 on $254,446 ofrevenue for fiscal 2010, compared with a net loss of $1,828,443 on$361,989 of revenue for fiscal 2009.

In 2010, the Company reported a net gain from discontinuedoperations of $3,119,901 compared to a net loss of $230,571 during2009. The change is a direct result of sale of the remainingSpanish subsidiaries in 2010.

The Company's balance sheet at September 30, 2010, showed$1,936,685 in total assets, $3,447,165 in total liabilities, allcurrent, and a stockholders' deficit of $1,510,480.

Based in Breda, in The Netherlands, Teleconnect Inc. (OTC BB:TLCO) Teleconnect Inc. (initially named Technology SystemsInternational Inc.) was incorporated under the laws of the Stateof Florida on November 23, 1998.

Serving as a telecommunications service provider in Spain foralmost 9 years, the Company never fully reached expectations anddecided late in 2008 to change its course of business. InNovember 2009, 90% of the Company's telecommunication business wassold to a Spanish group of investors, and on October 15, 2010, theCompany completed the acquisition of Hollandsche ExploitatieMaatschappij BV (HEM), a Dutch entity established in 2007. HEM'score business involves the age validation of consumers whenpurchasing products which cannot be sold to minors, such asalcohol or tobacco. The Company regards this age validationbusiness as its new strategic direction. The Dutch companiesacquired in 2007 (Giga Matrix, The Netherlands, 49% and Photowizz,The Netherlands, 100%) are considered to function complementary tothis new service offering.

Through the purchase of HEM and its ownership in Photowizz andGiga Matrix the Company now controls all four pillars under itsbusiness model: the manufacturing and leasing of electronic agevalidation equipment, the performance of age validationtransactions remotely, the performance of market surveys and thebroadcasting of in-store commercial messages using the agevalidation equipment in between age checks.

The Disclosure Statement has been approved by the Court ascontaining "adequate information" pursuant to Section 1125(a) ofthe Bankruptcy Code. Judge Sean Lane entered the DisclosureStatement approval order on December 22, 2010.

The solicitation versions of the Plan and Disclosure Statementcontain changes made after the previous versions were filed onDecember 17, 2010.

Among other things, the changes include:

-- the change of Class 6(b)'s status from "unimpaired" to "impaired" because the TSN Debtors reserved the right to treat holders of Class 6(b) Claims, at the Confirmation Hearing, as "unimpaired" and conclusively presumed to have accepted the Plan pursuant to Section 1126(f) of the Bankruptcy Code. Specifically, in the event that the aggregate amount of Allowed Class 6(b) Claims is $38 million or less, holders of Allowed Class 6(b) Claims will receive payment in full and will therefore be Unimpaired;

-- the addition of a provision that the TSN Debtors will file a list of the executory contracts and unexpired leases they intend to reject no later than February 7, 2011; and

-- the inclusion of a note revealing that Sprint Nextel commenced an adversary proceeding against the indenture trustee for the Debtors' Senior Secured Notes.

Full-text copies of the Solicitation Versions of the Plan andDisclosure Statement are available for free at:

Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)-- http://www.terrestar.com/-- is in the mobile communications business through its ownership of TerreStar Networks, itsprincipal operating subsidiary, and TerreStar Global.

TerreStar Networks, in cooperation with its Canadian partners,TerreStar Canada and TerreStar Solutions, majority-ownedsubsidiaries of Trio 1 and 2 General Partnerships, plans to launchan innovative wireless communications system to provide mobilecoverage throughout the United States and Canada using integratedsatellite-terrestrial smartphones and other devices. This systembuild out will be based on an integrated satellite and ground-based technology intended to provide communication service in mosthard-to-reach areas and will provide a nationwide interoperable,survivable and critical communications infrastructure. TheCompany intends to provide multiple communications applications,including voice, data and video services.

As of June 30, 2010, the Company had four wholly ownedsubsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStarHoldings Inc., and TerreStar New York Inc. Motient VenturesHolding Inc., a wholly owned subsidiary of MVH Holdings Inc.,directly holds approximately 89.3% and 86.5% interest in TerreStarNetworks and TerreStar Global, respectively.

TerreStar Networks Inc. and Its affiliates filed voluntarypetitions for relief under Chapter 11 of the United StatesBankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.10-15446).

TERRESTAR NETWORKS: Committee Files Motion on Confidential Info.----------------------------------------------------------------The Official Committee of Unsecured Creditors in TerreStarNetworks Inc.'s cases seeks an order from the Bankruptcy Courtdetermining that it is not authorized or required to provideaccess to confidential information or privileged informationpursuant to Section 1102(b)(3)(A) of the Bankruptcy Code to anycreditor that it represents.

"Such relief is not only in the best interests of the [Debtors']estates, but also will protect the Committee by making clear thatit is not violating the Bankruptcy Code by refusing to providesuch information to creditors," David M. Posner, Esq., atOtterbourg Steindler Houston & Rosen P.C., in New York, contends,on behalf of the Committee.

Section 1102(b)(3) provides that an official committee appointedunder Section 1102(a) will "provide access to information forcreditors who hold claims of the kind represented by thatcommittee; but does not indicate how an official committee shouldprovide access to "information," and, more importantly, does notindicate the nature, scope, or extent of the "information" thatan official committee must provide to creditors who hold claimsof the kind represented by such committee.

The Debtors are in a competitive industry and are currentlyengaged in a marketing-and-sales process, Mr. Posner tells theCourt. The dissemination of Confidential Information to partieswho are not bound by any confidentiality agreement directly withthe Debtors, he asserts, could have serious negative consequencesfor the Debtors.

If the Debtors' general creditors could require the Committee togive them access to Confidential Information in the possession ofthe Committee, the information easily could become publicimmediately thereafter, Mr. Posner points out.

The public dissemination of Confidential Information would likelycause serious harm to the Debtors' estates because, among otherthings, the Debtors' business strategies and intended initiativeswould become known to the Debtors' competitors, thereby allowingsuch competitors to adjust to the Debtors' strategies and reduceor eliminate the value of the initiatives to the estates," Mr.Posner emphasizes.

Moreover, if there is a risk that Confidential Information givenby the Debtors to the Committee could have to be turned over toany creditor or claimholder, the Debtors would be highlydiscouraged from giving Confidential Information to the Committeein the first place, Mr. Posner says. In turn, he points out, theinability of the Committee to gain access to ConfidentialInformation could limit its ability to fulfill its statutoryobligations under the Bankruptcy Code.

The Committee's request does not mean that the Committee will notbe providing information to its constituents pursuant to Section1103(b)(3)(A) of the Bankruptcy Code, Mr. Posner clarifies. TheCommittee believes that creditors and other claimholders will,through various means, have access to a variety of publicinformation concerning the Debtors, including pleadings filedwith the Court, the Debtors' schedules and statements offinancial affairs, and the Debtors' monthly operating reports.

About TerreStar Networks

Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)-- http://www.terrestar.com/-- is in the mobile communications business through its ownership of TerreStar Networks, itsprincipal operating subsidiary, and TerreStar Global.

TerreStar Networks, in cooperation with its Canadian partners,TerreStar Canada and TerreStar Solutions, majority-ownedsubsidiaries of Trio 1 and 2 General Partnerships, plans to launchan innovative wireless communications system to provide mobilecoverage throughout the United States and Canada using integratedsatellite-terrestrial smartphones and other devices. This systembuild out will be based on an integrated satellite and ground-based technology intended to provide communication service in mosthard-to-reach areas and will provide a nationwide interoperable,survivable and critical communications infrastructure. TheCompany intends to provide multiple communications applications,including voice, data and video services.

As of June 30, 2010, the Company had four wholly ownedsubsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStarHoldings Inc., and TerreStar New York Inc. Motient VenturesHolding Inc., a wholly owned subsidiary of MVH Holdings Inc.,directly holds approximately 89.3% and 86.5% interest in TerreStarNetworks and TerreStar Global, respectively.

TerreStar Networks Inc. and Its affiliates filed voluntarypetitions for relief under Chapter 11 of the United StatesBankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.10-15446).

Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, inNew York, contends that by filing identical claims aggregatingmore than $104 million against each of the TSN Debtors, SprintNextel opportunistically and inequitably is attempting to turnthe bankruptcy claims process "on its head and create claims thatdid not previously exist, either legally or factually."

Instead of filing a single proof of claim against TerreStarNetworks Inc., the one debtor entity against which Sprint Nextelsought reimbursement for certain expenses pursuant to FederalCommunications Commission orders through prepetition litigation,Sprint Nextel for the first time asserts that each of the Debtorsis jointly and severally liable to it for the reimbursement, Mr.Dizengoff points out.

Mr. Dizengoff asserts that the reason for Sprint Nextel's newapproach is clear -- as an unsecured creditor of TSN, Sprint isbehind close to $1 billion in secured debt obligations, and maynot receive a large recovery on its claim, whereas at otherdebtor entities, unsecured creditors might obtain a largerrecovery.

Sprint Nextel does not have a claim against any of the TSNDebtors, other than TerreStar Networks, Inc. and TerreStarLicense, Inc., Mr. Dizengoff argues.

He relates that Sprint's claim for reimbursement of certainexpenses depends on, relates to, and arises out of a long historyof FCC regulatory rulings and civil litigation. In 2004, the FCCallowed Sprint to exchange certain of its existing 800 MHzspectrum licenses for new licenses in the 800 MHz band and for alicense to use certain spectrum in the 2 GHz band. In exchangefor its new spectrum license rights, Sprint agreed to undertakethe obligation to relocate existing users in the 800 MHz band andcertain Broadcast Auxiliary Service licensees in theGHz band. Because the 2 GHz spectrum Sprint received wassignificantly more valuable than the spectrum it gave up, the FCCrequired Sprint to make a payment to the United States Treasuryof roughly $2.8 billion at the conclusion of the relocationprocess. Sprint, however, is allowed to deduct all of its 2 GHzband-clearing costs, plus certain other costs, from the roughly$2.8 billion Anti-Windfall Payment. Sprint is also allowed toseek reimbursement from Mobile Satellite Service licensees undercertain circumstances for each of the MSS Licensees' pro ratashare of eligible band-clearing costs attributable to relocatingBAS licenses instead of receiving a credit for those costsagainst the Anti-Windfall Payment.

"That reimbursement is what Sprint is attempting to recoverthrough its Proofs of Claim," Mr. Dizengoff says.

On June 25, 2008, Sprint filed a lawsuit in the UnitedStates District Court for the Eastern District of Virginia namingTSN and New ICO Satellite Services G.P. n/k/a DBSD North America,Inc., but no other Debtor, as defendants. In the SprintLitigation, Sprint sought the MSS Reimbursement against TSN andDBSD. The Sprint Litigation was stayed without any finding bythe Virginia Court of liability to Sprint by TSN or DSBD, and allof the claims were referred to the FCC for resolution.

On September 29, 2010, the FCC issued a declaratory ruling, whichallegedly gave certain guidance regarding potential liability forthe MSS Reimbursement but did not uphold Sprint's claims againstany entity or otherwise provide a resolution to the claims. Inthe 2010 Declaratory Ruling, and according to Sprint, the FCCespoused certain guidelines for enterprise liability; however,FCC never once used the words "joint" and "several liability"when discussing the "enterprise liability" concept, Mr. Dizengoffpoints out.

The 2010 Declaratory Ruling is now on appeal to the United StatesCourt of Appeals for the District of Columbia Circuit, and thepetitioner's brief is currently due in early 2011.

Not only did the 2010 Declaratory Ruling fail to provide a finalresolution to Sprint's alleged claim against TSN or even remotelydiscuss the concept of joint and several liability, but it alsodid not address the liability of any other Non-TSN Debtor becausethat issue was not before the FCC, Mr. Dizengoff contends. Headds that not once, either before or after the 2010 DeclaratoryRuling, did Sprint attempt to amend the Sprint Litigation to nameany Debtor other than TSN as a defendant nor did Sprint everassert that any Debtor, other than TSN, was liable for the MSSReimbursement prior to filing its proofs of claim.

"Despite all of this, Sprint now claims that all of the TSNDebtors are jointly and severally liable to Sprint for the MSSReimbursement," Mr. Dizengoff says.

To support its assertion, Sprint relies on the 2010 DeclaratoryRuling's discussion of Sprint's allegation that DBSD's parententity, which was not a Chapter 11 debtor, should be liable forthe claims brought against its bankrupt subsidiary.

Sprint's reliance is misplaced, Mr. Dizengoff argues, becauseenterprise liability does not seek to make a parent corporationliable for the actions of its subsidiary, but rather recognizesin appropriate cases that the parent is liable for its ownactions as part of the overall enterprise that it has created andoperated.

In contrast, in the current case, Sprint is trying to use the2010 Declaratory Ruling's standard to create liability not forthe licensee's direct parent, but for all of the Non-TSN Debtors,Mr. Dizengoff cites. "Sprint's reliance on the 2010 DeclaratoryRuling for this purpose is legally and factually misplaced," hemaintains.

About TerreStar Networks

Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)-- http://www.terrestar.com/-- is in the mobile communications business through its ownership of TerreStar Networks, itsprincipal operating subsidiary, and TerreStar Global.

TerreStar Networks, in cooperation with its Canadian partners,TerreStar Canada and TerreStar Solutions, majority-ownedsubsidiaries of Trio 1 and 2 General Partnerships, plans to launchan innovative wireless communications system to provide mobilecoverage throughout the United States and Canada using integratedsatellite-terrestrial smartphones and other devices. This systembuild out will be based on an integrated satellite and ground-based technology intended to provide communication service in mosthard-to-reach areas and will provide a nationwide interoperable,survivable and critical communications infrastructure. TheCompany intends to provide multiple communications applications,including voice, data and video services.

As of June 30, 2010, the Company had four wholly ownedsubsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStarHoldings Inc., and TerreStar New York Inc. Motient VenturesHolding Inc., a wholly owned subsidiary of MVH Holdings Inc.,directly holds approximately 89.3% and 86.5% interest in TerreStarNetworks and TerreStar Global, respectively.

TerreStar Networks Inc. and Its affiliates filed voluntarypetitions for relief under Chapter 11 of the United StatesBankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.10-15446).

TERRESTAR NETWORKS: Wins Approval for Blackstone as Fin'l Advisor-----------------------------------------------------------------TerreStar Networks Inc. and its units received final approval toemploy Blackstone Advisory Partners L.P. as their financialadvisor nunc pro tunc to the Petition Date.

Jeffrey Epstein, TerreStar Networks, Inc.'s president and chiefexecutive officer, relates that the Debtors selected Blackstonein April 2010 after interviewing several other potentialcandidates and considering the qualifications and proposedcompensation of each candidate. He adds that the Debtors havebeen working closely with the Advisor since that time andBlackstone has become intimately familiar with the Debtors'business, affairs, assets and contractual arrangements.

As the Debtors' financial advisor, Blackstone will:

(a) assist in the evaluation of the Debtors' business and prospects;

(b) assist in the development of the Debtors' long-term business plan and related financial projections;

(c) assist in the development of financial data and presentations to the Debtors' Board of Directors, various creditors and other third parties;

(d) analyze various restructuring scenarios and the potential impact of the scenarios on the recoveries of various stakeholders impacted by the restructuring;

(e) provide strategic advice with regard to restructuring or refinancing the Debtors' obligations;

(o) provide other advisory services as are customarily provided in connection with the analysis and negotiation of a restructuring as reasonably requested.

The Debtors propose to pay Blacstone's fees and compensatenecessary out-of-pocket expenses according to this fee structure:

(a) A monthly advisory fee of $200,000. One-half of each Monthly Fee in excess of the first $800,000 in monthly fees will be credited against the transaction fee;

(b) A transaction fee equal to $8,400,000 payable upon the consummation of any restructuring pursuant to a bankruptcy proceeding;

(c) A DIP financing fee of 1% of the face amount of any new DIP financing provided by a non-affiliate arranged by the Advisor;

(d) A debt financing fee of 1% of the face amount of any new debt financing provided by a Non-Affiliate arranged by the Advisor in connection with a plan of reorganization;

(e) An equity financing fee of 3% of the total amount of new equity financing provided by a non-affiliate and arranged by Blackstone in connection with a plan of reorganization; and

(f) Reasonable out-of-pocket expenses in connection with the services provided.

Mr. Epstein reveals that before the Petition Date and under theterms of its engagement, the Debtors paid Blackstone $1,317,054for services rendered from April 2010 to October 2010 and forrelated reasonable out-of-pocket expenses.

In connection with the engagement, the Debtors and Blackstonealso entered into an indemnification agreement, where the Debtorsagreed to indemnify and hold harmless Blackstone and itsaffiliates and their partners, members, officers, directors,employees and agents and each other person, if any, related to,arising out of or in connection with the retention of the Advisorby the Debtor. Nevertheless, these conditions apply to theparties' Indemnification Agreement:

(a) All requests of Indemnified Persons for payment of indemnity, contribution or otherwise pursuant to the indemnification provisions of the Indemnification Agreement will be made by means of an interim or final fee application and will be subject to the approval of, and review by, the Court to ensure that the payment conforms to the terms of the Indemnification Agreement, the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the Local Rules of Bankruptcy Procedure for the Southern District of New York and the orders of the Court and is reasonable based upon the circumstances of the litigation or settlement in respect of which indemnity is sought; provided, however, that in no event will an Indemnified Person be indemnified or receive contribution to the extent that any claim or expense has resulted from gross negligence or willful misconduct on the part of that or any other Indemnified Person.

(b) In no event will an Indemnified Person be indemnified or receive contribution or other payment under the Indemnification Agreement if the Debtors, their estates, or the official committee of unsecured creditors assert a claim, to the extent that the Court determines by final order that the claim arose out of gross negligence, or willful misconduct on the part of that or any other Indemnified Person.

(c) In the event an Indemnified Person seeks reimbursement for attorneys' fees from the Debtors pursuant to the Indemnification Agreement, the invoices and supporting time records from the attorneys will be annexed to Blackstone's own interim and final fee applications, and the invoices and time records will be subject to the U.S. Trustee Guidelines and the approval of the Court under the standards of Section 330 of the Bankruptcy Code without regard to whether the attorney has been retained under Section 327 of the Bankruptcy Code.

Stevin Zelin, a senior managing director of Blackstone, assuresthe Court that his firm is a "disinterested person" as the termis defined under Section 101(14) of the Bankruptcy Code.

About TerreStar Networks

Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)-- http://www.terrestar.com/-- is in the mobile communications business through its ownership of TerreStar Networks, itsprincipal operating subsidiary, and TerreStar Global.

TerreStar Networks, in cooperation with its Canadian partners,TerreStar Canada and TerreStar Solutions, majority-ownedsubsidiaries of Trio 1 and 2 General Partnerships, plans to launchan innovative wireless communications system to provide mobilecoverage throughout the United States and Canada using integratedsatellite-terrestrial smartphones and other devices. This systembuild out will be based on an integrated satellite and ground-based technology intended to provide communication service in mosthard-to-reach areas and will provide a nationwide interoperable,survivable and critical communications infrastructure. TheCompany intends to provide multiple communications applications,including voice, data and video services.

As of June 30, 2010, the Company had four wholly ownedsubsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStarHoldings Inc., and TerreStar New York Inc. Motient VenturesHolding Inc., a wholly owned subsidiary of MVH Holdings Inc.,directly holds approximately 89.3% and 86.5% interest in TerreStarNetworks and TerreStar Global, respectively.

TerreStar Networks Inc. and Its affiliates filed voluntarypetitions for relief under Chapter 11 of the United StatesBankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.10-15446).

As a satellite communications company, the Debtors are subject toregulation and oversight by the FCC.

The Committee points out that the Debtors' cases involve complexFCC regulatory and satellite-related issues which are central totheir bankruptcy cases, and which will have a material impact onthe value of their estates. As the outcome of issues involvingthe Debtors directly impact the recovery available to creditorsas well as the timing of any recovery, the Committee asserts thatit must ensure that those matters receive appropriate attentionand that it provide input as needed to move in the appropriatedirection.

The Committee explains that it has selected Sheppard Mullin toprovide general advice concerning FCC regulatory and satellite-related bankruptcy issues because of the firm's extensiveexperience and widely recognized reputation and expertise in FCCregulatory issues, its expertise in satellite-related issues, andits expertise in satellite-related bankruptcy law.

The Debtors propose to pay for Sheppard Mullin's services basedon the firm's hourly rates in addition to reimbursing the firmfor its necessary out-of-pocket expenses.

The Sheppard Mullin professionals used in the engagement andtheir hourly rates are:

Brian Weimer, Esq., a member of Sheppard Mullin, assures theCourt that his firm is a "disinterested person" as the term isdefined under Section 101(14) of the Bankruptcy Code.

About TerreStar Networks

Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)-- http://www.terrestar.com/-- is in the mobile communications business through its ownership of TerreStar Networks, itsprincipal operating subsidiary, and TerreStar Global.

TerreStar Networks, in cooperation with its Canadian partners,TerreStar Canada and TerreStar Solutions, majority-ownedsubsidiaries of Trio 1 and 2 General Partnerships, plans to launchan innovative wireless communications system to provide mobilecoverage throughout the United States and Canada using integratedsatellite-terrestrial smartphones and other devices. This systembuild out will be based on an integrated satellite and ground-based technology intended to provide communication service in mosthard-to-reach areas and will provide a nationwide interoperable,survivable and critical communications infrastructure. TheCompany intends to provide multiple communications applications,including voice, data and video services.

As of June 30, 2010, the Company had four wholly ownedsubsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStarHoldings Inc., and TerreStar New York Inc. Motient VenturesHolding Inc., a wholly owned subsidiary of MVH Holdings Inc.,directly holds approximately 89.3% and 86.5% interest in TerreStarNetworks and TerreStar Global, respectively.

TerreStar Networks Inc. and Its affiliates filed voluntarypetitions for relief under Chapter 11 of the United StatesBankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.10-15446).

TERRESTAR NETWORKS: Committee Proposes Cassels as Canadian Counsel------------------------------------------------------------------The Official Committee of Unsecured Creditors for TerreStarNetworks Inc. and its units seeks the Bankruptcy Court's authorityto retain Cassels Brock & Blackwell LLP as its Canadian counseleffective as of November 10, 2010.

The professional services that Cassels Brock is contemplated torender to the Committee include, but is not limited to:

(a) representing the Committee at hearings in the proceeding commenced in Canada by the Canadian Debtor affiliates under the Companies' Creditors Arrangement Act in Toronto, Ontario and any other related proceedings;

(b) reviewing and analyzing all pleadings, orders, statements of operations, schedules, and other legal documents in the Canadian Proceeding or any other proceedings in Canada relating to the Debtors, the Canadian Debtor Affiliates or any of their respective property, assets or businesses;

(c) reporting to and advising the Committee and its United States' professional advisors regarding the ramifications of proceedings before the Canadian Court in relation to the Debtors' Chapter 11 cases;

(d) advising the Committee and its U.S. Advisors on matters involving Canadian Law and practice and any proposed asset dispositions relevant to the Debtors' Chapter 11 cases;

(e) assisting the U.S. Advisors in their analysis of and negotiations with, the Debtors, the Canadian Debtor Affiliates or any third party concerning matters related to, among other things, the disposition of assets and formulating the terms of any plan or plans of reorganization for the Debtors and the Canadian Debtor Affiliates;

(f) assisting with the Committee's investigation of the Canadian Debtor Affiliates' assets, liabilities, intercompany loans financial condition and dealings with the Debtors;

(g) assisting the Committee and its U.S. Advisors in analyzing the claims of the creditors of the Canadian Debtor Affiliates and the U.S. Debtors;

(h) preparing on behalf of the Committee any pleadings, orders, reports and other legal documents as may be necessary in furtherance of the Committee's interest and objectives;

(i) assisting and advising the Committee and the U.S. Advisors with respect to any matters that they may request; and

(j) performing all other legal services as described by the Committee and its U.S. Advisors, which may be necessary and proper for the Committee to discharge its duties in the Chapter 11 cases.

The Committee proposes that Cassels Brock be paid for itsservices based on the firm's hourly rates, which are:

Partner/Counsel $495 to $895 Associate $300 to $525 Law Clerk $80 to $365

The firm will also be reimbursed for its necessary out-of pocketexpenses.

David S. Ward, Esq., a member of Cassels Brock, assures the Courtthat his firm is a "disinterested person" as the term is definedunder Section 101(14) of the Bankruptcy Code.

About TerreStar Networks

Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)-- http://www.terrestar.com/-- is in the mobile communications business through its ownership of TerreStar Networks, itsprincipal operating subsidiary, and TerreStar Global.

TerreStar Networks, in cooperation with its Canadian partners,TerreStar Canada and TerreStar Solutions, majority-ownedsubsidiaries of Trio 1 and 2 General Partnerships, plans to launchan innovative wireless communications system to provide mobilecoverage throughout the United States and Canada using integratedsatellite-terrestrial smartphones and other devices. This systembuild out will be based on an integrated satellite and ground-based technology intended to provide communication service in mosthard-to-reach areas and will provide a nationwide interoperable,survivable and critical communications infrastructure. TheCompany intends to provide multiple communications applications,including voice, data and video services.

As of June 30, 2010, the Company had four wholly ownedsubsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStarHoldings Inc., and TerreStar New York Inc. Motient VenturesHolding Inc., a wholly owned subsidiary of MVH Holdings Inc.,directly holds approximately 89.3% and 86.5% interest in TerreStarNetworks and TerreStar Global, respectively.

TerreStar Networks Inc. and Its affiliates filed voluntarypetitions for relief under Chapter 11 of the United StatesBankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.10-15446).

TIB FINANCIAL: Gets Noncompliance Letter From NASDAQ Stock Market-----------------------------------------------------------------On December 27, 2010, TIB Financial Corp. received written noticefrom the NASDAQ Stock Market that it no longer meets the minimum750,000 publicly held shares requirement for The NASDAQ GlobalSelect Market under Listing Rule 5450(b)(1)(B). For purposes ofthe listing requirement, publicly held shares means total sharesoutstanding less any shares held by officers, directors, orbeneficial owners of 10 percent or more.

The Company has advised the Nasdaq of its plan to regaincompliance. Based on the Company's plan, the Nasdaq may, in itsdiscretion, grant the Company an extension period during which theCompany may demonstrate evidence of compliance. Specifically, theCompany is currently engaged in a previously announcedsubscription rights offering, in which 1,488,792 shares of theCompany's common stock are being offered to holders of record ofthe Company's common stock as of 4:01 p.m., New York City time, onJuly 12, 2010.

If a sufficient number of shares of common stock being offeredin the rights offering are purchased by persons who are notofficers or directors of the Company, the Company would meet therequirement to have 750,000 publicly held shares outstanding. Ifthe NASDAQ's publicly held shares requirement is not met as aresult of subscriptions in the rights offering or otherwise, therecan be no assurance that the Company will be able to maintain itslisting on the NASDAQ.

About TIB Financial Corp.

Headquartered in Naples, Florida, TIB Financial Corp.-- http://www.tibfinancialcorp.com/-- is a financial services company with approximately $1.7 billion in total assets and 28full-service banking offices throughout the Florida Keys,Homestead, Naples, Bonita Springs, Fort Myers, Cape Coral andVenice. TIB Financial Corp. is also the parent company of NaplesCapital Advisors, Inc., a registered investment advisor withapproximately $169 million of assets under advisement. TIBFinancial Corp., through its wholly owned subsidiaries, TIB Bankand Naples Capital Advisors, Inc., serves the personal andcommercial banking and investment management needs of localresidents and businesses in its market areas.

The Company's balance sheet as of September 30, 2010, showed$1,740,891,000 in total assets, $1,563,826,000 in totalliabilities, and $177,065,000 in stockholders' equity.

* * *

As reported in the Troubled Company Reporter on April 6, 2010,Crowe Horwath LLP, in Fort Lauderdale, Fla., expressed substantialdoubt about the Company's ability to continue as a going concern,following its 2009 results. The independent auditors noted thatthe Company incurred net losses in 2009, 2008 and 2007, primarilyfrom loan and investment impairments. In addition, the Company'sbank subsidiary is operating under an informal agreement with bankregulatory agencies that requires, among other provisions, higherregulatory capital requirements. The Bank did not meet the highercapital requirement as of December 31, 2009, and therefore is notin compliance with the regulatory agreement. Failure to complywith the regulatory agreement may result in additional regulatoryenforcement actions.

TOM JUNKOVIC: Section 341(a) Meeting Scheduled for Feb. 2---------------------------------------------------------The U.S. Trustee for Region 11 will convene a meeting of TomJunkovic's creditors on February 2, 2011, at 1:30 p.m. Themeeting will be held at 219 South Dearborn, Office of the U.S.Trustee, 8th Floor, Room 802, Chicago, IL 60604.

This is the first meeting of creditors required under Section341(a) of the U.S. Bankruptcy Code in all bankruptcy cases.

All creditors are invited, but not required, to attend. ThisMeeting of Creditors offers the one opportunity in a bankruptcyproceeding for creditors to question a responsible office of theDebtor under oath about the company's financial affairs andoperations that would be of interest to the general body ofcreditors.

TOTAL SAFETY: S&P Raises Rating on First-Lien Credit Loan to 'B'----------------------------------------------------------------Standard & Poor's Ratings Services said that it raised its issuerating on Total Safety U.S. Inc.'s first-lien credit facility to'B' (one notch above the corporate credit rating) from 'B-'. Thefacility consists of a $15 million revolver and an $85 millionterm loan. The recovery rating was revised to '2', indicating itsexpectation of substantial recovery (70% to 90%) in a default,from '3'. The rating revision reflects an increased valuation atemergence in its default scenario.

The corporate credit rating on Houston-based Total Safety is 'B-'and the outlook is stable.

The ratings on Total Safety reflect the company's aggressivefinancial leverage and niche business position in the fragmentedmarket for safety equipment and maintenance services for cyclicaloil and gas end markets. The ratings also reflect a diversifiedcustomer base, low volatility in demand for product and services,and low capital spending requirements.

Ratings List

Total Safety U.S. Inc.

Corporate credit rating B-/Stable/--

Revised Ratings

To From -- ---- First-lien credit facility B B- Recovery rating 2 3

TOUSA INC: U.S. Trustee Objects to Creditors' Disclosure Statement------------------------------------------------------------------BankruptcyData.com reports that the U.S. Trustee assigned to theTOUSA Inc. case filed with the U.S. Bankruptcy Court a limitedobjection to the Disclosure Statement filed by the committee ofunsecured creditors.

"The United States Trustee is filing this objection with areservation to supplement further as additional information ismade available. It is anticipated that there will be several morerevisions to the documents as the mediation process and appealsprocess move forward and matters are resolved either throughnegotiation and settlement of the parties or final non appealableorders, and the United States Trustee reserves the right to raiseadditional arguments," Trustee said in the objection, according toBData.

TOWNSENDS INC: Taps SSG Capital as Investment Banker----------------------------------------------------Townsends, Inc., et al., ask for authorization from the U.S.Bankruptcy Court for the District of Delaware to employ SSGCapital Advisors, LLC, as investment banker to the Debtors, nuncpro tunc to the Petition Date.

SSG will, among other things:

a. prepare an information memoranda describing the Debtors, their historical performances and prospects, including existing contracts, marketing and sales, labor force, and management and anticipated financial results of the Debtors;

b. assist the Debtors in developing a list of suitable potential buyers who will be contacted on a discreet and confidential basis after approval by the Debtors;

c. coordinate the execution of confidentiality agreements for potential buyers wishing to review the information memoranda; and

d. assist the Debtors in coordinating site visits for interested buyers and work with the management team to develop appropriate presentations for the visits.

SSG will be paid: (i) a monthly fee equal to $50,000 per monthpayable beginning January 1, 2011, and continuing on the 1st ofeach month thereafter during the engagement term; (ii) upon theconsummation of a sale transaction, a sale fee payable in cash, infederal funds via wire transfer or certified check, at, and as acondition of, closing the transaction, equal to the greater of$450,000 or 1.50% of total consideration, up to $40 million plus2.5% of total consideration between $40 million and $50 millionplus 3.5% of total consideration in excess of $50 million; and(iii) reimbursement for all reasonable and customary out of pocketexpenses incurred.

J. Scott Victor, founding member and managing director of SSG,assures the Court that the firm is a "disinterested person" asthat term defined in Section 101(14) of the Bankruptcy Code.

In its Chapter 11 petition, Townsends, Inc., estimated assets of$10 million to $50 million and debts of $50 million to$100 million.

As of December 5, 2010, the Debtors disclosed $131 million intotal assets and $127 million in total debts.

TRIBUNE CO: Bank Debt Trades at 32% Off in Secondary Market-----------------------------------------------------------Participations in a syndicated loan under which Tribune Co. is aborrower traded in the secondary market at 68.57 cents-on-the-dollar during the week ended Friday, December 31, 2010, accordingto data compiled by Loan Pricing Corp. and reported in The WallStreet Journal. This represents an increase of 0.71 percentagepoints from the previous week, The Journal relates. The Companypays 300 basis points above LIBOR to borrow under the facility.The bank loan matures on May 17, 2013. Moody's has withdrawn itsrating on the bank debt. The loan is one of the biggest gainersand losers among 187 widely quoted syndicated loans with five ormore bids in secondary trading for the week ended Friday.

The Company and 110 of its affiliates filed for Chapter 11protection on December 8, 2008 (Bankr. D. Del. Lead Case No. 08-13141). The Debtors proposed Sidley Austin LLP as their counsel;Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;Lazard Ltd. And Alvarez & Marsal North America LLC as financialadvisors; and Epiq Bankruptcy Solutions LLC as claims agent. Asof December 8, 2008, the Debtors have $7,604,195,000 in totalassets and $12,972,541,148 in total debts.

UNI-PIXEL INC: Osmium Special Discloses 7.15% Equity Stake----------------------------------------------------------In a Schedule 13G filing with the Securities and ExchangeCommission on December 22, 2010, Osmium Special Situations FundLtd., disclosed that it beneficially owns 509,600 shares of commonstock of Uni-Pixel, Inc. representing 7.15% of the sharesoutstanding. Each of Osmium Capital Management, Ltd. and ChrisKuchanny own 509,600 shares.

As of October 29, 2010, the Company had 52,100,535 shares ofissued and outstanding common stock, par value $0.001 per share.

PMB Helin Donovan, LLP, in Houston, expressed substantial doubtabout the Company's ability to continue as a going concern,following the Company's 2009 results. The independent auditorsnoted that the Company has sustained losses and negative cashflows from operations since inception.

The Company's balance sheet as of September 30, 2010, showed$1.26 million in total assets, $4.15 million in total liabilities,and a stockholders' deficit of $2.89 million.

UNITED CONTINENTAL: To Reduce Capacity, Says Analyst----------------------------------------------------United Continental Holdings Inc. will trim capacity in Chicago andDenver in its first network adjustments after the merger, MaryJane Credeur of Bloomberg News reported, citing a HudsonSecurities analyst.

Hudson Securities analyst Daniel McKenzie wrote in a note toclients that the merged airline's available seats in the U.S. willbe down 1.9% in the first quarter while the rest of the U.S.carriers will collectively boost capacity to about 2%, Bloombergdisclosed. "United Continental management appears serious aboutcontinuing to cut unprofitable, domestic flying," Mr. McKenziewrote, says the report. The move will help the company post firstquarter earnings of 20 cents a share, its first profit in thatperiod since 2000, the report added, citing the analyst's note.

According to Mike Trevino, a spokesperson for United Continental,the company has not announced capacity plans for the quarter,Bloomberg related. Mr. Trevino further noted that the companyplans to increase available seats by as much as 2% for next year,citing an October 21, 2010 forecast.

In addition, United Continental intends to boost capacity by about3% at Houston and 12% at LaGuardia, Mr. McKenzie related,Bloomberg said.

About United Continental

United Continental Holdings, Inc. (NYSE: UAL) --http://www.UnitedContinentalHoldings.com/, http://www.united.com/and http://www.continental.com/-- is the holding company for both United Airlines and Continental Airlines. Together with UnitedExpress, Continental Express and Continental Connection, theseairlines operate a total of approximately 5,800 flights a day to371 airports throughout the Americas, Europe and Asia from theirhubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles,New York, San Francisco, Tokyo and Washington, D.C. United andContinental are members of Star Alliance, which offers more than21,200 daily flights to 1,172 airports in 181 countries worldwidethrough its 28 member airlines. United's and Continental's morethan 80,000 employees reside in every U.S. state and in manycountries around the world.

United and American Airlines, the airport's other tenant, want todelay the expansion, which includes construction of two newrunways at the airport, until air travel picks up.

According to the report, traffic at O'Hare remains far belowlevels forecast when the project began. The report further notedthat the flight delays that led to calls for expansion haveimproved dramatically since a new runway was constructed two yearsago. With that, United has gone from second-worst to first in on-time rankings among the large carriers, the report added.

Messrs. Pletz and Hinz disclosed that a $3.2 billion first phaseof the project, which includes the two new runways and extensionof another runway, is almost finished. The report said the citywill need about $3.2 billion to $3.5 billion to move two otherrunways and extend a third. However, the airlines, which will pay65% of the tab through higher landing fees, have opposed the feehikes, the report stated.

About United Continental

United Continental Holdings, Inc. (NYSE: UAL) --http://www.UnitedContinentalHoldings.com/, http://www.united.com/and http://www.continental.com/-- is the holding company for both United Airlines and Continental Airlines. Together with UnitedExpress, Continental Express and Continental Connection, theseairlines operate a total of approximately 5,800 flights a day to371 airports throughout the Americas, Europe and Asia from theirhubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles,New York, San Francisco, Tokyo and Washington, D.C. United andContinental are members of Star Alliance, which offers more than21,200 daily flights to 1,172 airports in 181 countries worldwidethrough its 28 member airlines. United's and Continental's morethan 80,000 employees reside in every U.S. state and in manycountries around the world.

At June 30, 2010, UAL had $20.134 billion in total assets againsttotal current liabilities of $8.573 billion, long-term debt of$6.281 billion, long-term obligations under capital leases of$1.01 billion, other liabilities and deferred credits of$7.022 billion, and a stockholders' deficit of $2.756 billion.

UNITED CONTINENTAL: Pilots to Ask Mediation on Outsourcing Dispute------------------------------------------------------------------Pilots at United Air Lines, Inc., and Continental Airlines, Inc.,said they would likely ask federal mediators to resolve a disputewith United Continental Holdings Inc.'s management over outsourcedflying, Doug Cameron of Dow Jones Newswires reported.

The pilots conducted informational picketing against UnitedContinental's outsourcing flying to other airlines, use of the COcode on flights from Continental hubs, and use of outsourced 70-seat jets, in alleged violations of Continental pilots' contracts.

Dow Jones Newswires said the pilots at United and Continental setDecember 15, 2010, as a deadline to reach a tentative jointcollective bargaining agreement with management after thecarriers' merger in October 2009. The parties agreed to apply tothe National Mediation Board for assistance by December 17, 2010,if no tentative deal is reached, the report noted.

United Continental has insisted the outsourcing does not violatethe pilots' contract, and stated that the parties have agreed toan expedited and binding arbitration to resolve the dispute, Mr.Cameron related.

According to another report from Julie Johnsson of ChicagoTribune, United Continental said it redeploys 70-seaters in someof hub markets to better meet demand and improve profitability.

About United Continental

United Continental Holdings, Inc. (NYSE: UAL) --http://www.UnitedContinentalHoldings.com/, http://www.united.com/and http://www.continental.com/-- is the holding company for both United Airlines and Continental Airlines. Together with UnitedExpress, Continental Express and Continental Connection, theseairlines operate a total of approximately 5,800 flights a day to371 airports throughout the Americas, Europe and Asia from theirhubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles,New York, San Francisco, Tokyo and Washington, D.C. United andContinental are members of Star Alliance, which offers more than21,200 daily flights to 1,172 airports in 181 countries worldwidethrough its 28 member airlines. United's and Continental's morethan 80,000 employees reside in every U.S. state and in manycountries around the world.

At June 30, 2010, UAL had $20.134 billion in total assets againsttotal current liabilities of $8.573 billion, long-term debt of$6.281 billion, long-term obligations under capital leases of$1.01 billion, other liabilities and deferred credits of$7.022 billion, and a stockholders' deficit of $2.756 billion.

UNITED CONTINENTAL: Uses Mobile Computers to Cut Down Long Lines----------------------------------------------------------------Agents at United Air Lines, Inc., are using hand-held computers tocut down long customer service lines at the airport, Wailin Wongof Chicago Tribune reported. The devices manufactured by Motorolaand outfitted with LineBuster software enable United's agents tolook up customers' information, scan boarding passes, read creditcards and determine whether a traveler should stay in line or usea kiosk, the report related. United agents can also access flightinformation for other airlines, giving stranded passengers an ideaof their options, the report noted.

Chicago Tribune stated that United launched the program thismonth, deploying about 40 of the hand-held computers in five hubs:O'Hare Airport, Denver, Los Angles, San Franciso and WashingtonDulles. According to Guy Zalel, a project manager for airportstrategy at United, United agents using the devices were able toclear a line of about 100 people in 20 minutes at O'Hare, thereport added.

In related news, United is dropping its reservations systemcreated by Travelport Ltd. in favor of a platform provided byHewlett-Packard Co., The Wall Street Journal reported.

In addition, United launched a Web site in traditional Chinese tobroaden its range of services for the Chinese market, according toTaiwan News. In celebration of the launch, United organized alucky draw activity for a round-trip ticket between Taiwan and theUnited States, Taiwan News said.

About United Continental

United Continental Holdings, Inc. (NYSE: UAL) --http://www.UnitedContinentalHoldings.com/, http://www.united.com/and http://www.continental.com/-- is the holding company for both United Airlines and Continental Airlines. Together with UnitedExpress, Continental Express and Continental Connection, theseairlines operate a total of approximately 5,800 flights a day to371 airports throughout the Americas, Europe and Asia from theirhubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles,New York, San Francisco, Tokyo and Washington, D.C. United andContinental are members of Star Alliance, which offers more than21,200 daily flights to 1,172 airports in 181 countries worldwidethrough its 28 member airlines. United's and Continental's morethan 80,000 employees reside in every U.S. state and in manycountries around the world.

At June 30, 2010, UAL had $20.134 billion in total assets againsttotal current liabilities of $8.573 billion, long-term debt of$6.281 billion, long-term obligations under capital leases of$1.01 billion, other liabilities and deferred credits of$7.022 billion, and a stockholders' deficit of $2.756 billion.

US FOODSERVICE: Bank Debt Trades at 9% Off in Secondary Market--------------------------------------------------------------Participations in a syndicated loan under which U.S. Foodservice,Inc., is a borrower traded in the secondary market at 90.98 cents-on-the-dollar during the week ended Friday, December 31, 2010,according to data compiled by Loan Pricing Corp. and reported inThe Wall Street Journal. This represents an increase of 0.34percentage points from the previous week, The Journal relates.The Company pays 275 basis points above LIBOR to borrow under thefacility. The bank loan matures on July 3, 2014, and carriesMoody's B2 rating. The loan is one of the biggest gainers andlosers among 187 widely quoted syndicated loans with five or morebids in secondary trading for the week ended Friday.

U.S. Foodservice, Inc. -- http://www.usfoodservice.com/-- is a foodservice supplier serving some 250,000 customers from more than70 distribution facilities. The Company supplies restaurants,hotels, school, and other foodservice operators with a widevariety of food products, including canned and dry foods, meats,frozen foods, and seafood. It also distributes kitchen equipmentand cleaning supplies among other non-food supplies. U.S.Foodservice distributes both national brand products and its ownprivate labels. Tracing its roots to 1853, the company is ownedby private equity firms KKR & Co. and Clayton, Dubilier & Rice.

VENTO FAMILY: Issues With Banks Prompted Bankruptcy Filing----------------------------------------------------------Kristen MacBeth at BankruptcyHome.com reports that the VentoFamily Trust filed for Chapter 11 bankruptcy after it has beenmired in legal trouble, facing lawsuits from the Community Bank ofNevada, City National Bank and Nevada Commerce Bank. CityNational filed its lawsuit in September saying Vento and itscompanies had defaulted on a $2.7 million loan for the developmentof a bar and restaurant. The bank purchased the property fromanother financial group when it entered the foreclosure process inApril, and is now suing for the deficiency balance. Each of thebanks was mentioned as creditor in the Chapter 11 filing.

WANNADO CITY THEME PARK: Stampler Auctions to Liquidate Firm------------------------------------------------------------Stampler Auctions disclosed that the absolute public auction ofthe contents of Wannado City indoor theme park, according to HarryStampler, president and auctioneer.

The absolute auction will be held at 12801 West Sunrise Boulevard,Sawgrass Mills, Anchor D, Sunrise, Fla., beginning at 10:00 a.m.(EST) on January 11, 2011. Bidders can bid live on-site and/orsimultaneously on-line at Proxibid.com. Pre-registration and pre-approval are required in order to bid online. More information,including photographs and inventory, can be found athttp://www.stamplerauctions.com/

Wannado City, a children's role-play theme park, opened in 2004 ata cost of approximately $40 million. It was designed as a cityfor kids to play in interactive environments as police officers,reporters and doctors along with dozens of other careers.

Stampler said, "This absolute auction is unique as this is theonly Wannado City that has been developed. Wannado City has chosenStampler Auctions to maximize the return via the auction method ofmarketing. Don't miss this opportunity."

Stampler Auctions will sell all non-real property to the highestbidders on auction day. Four restaurants, a kiddie amusementpark, a radio station, an operating circus inside the big top anda Spirit Airlines DC-9 fuselage will all be sold.

Lighting, sound equipment, speakers, props, costumes, lamp postsand rock climbing walls are only some of the additional assets tobe put under the hammer. Servers, laptops, desktops, and hundredsof technology items will also be sold.

Stampler Auctions will conduct a sit-down theatre style auction inthe Wannado City "Broadway Theater". Inspection of the assetswill be held on January 10, 2011 from 9:00 a.m. to 4:00 p.m. and8:00 a.m. to 10:00 a.m. on auction day.

Stampler Auctions is a full service auction firm and has conductedauctions in 26 states. Founded in 1960, South Florida has beentheir headquarters since 1985.

WASHINGTON MUTUAL: Settlement Termination Deadline Extended-----------------------------------------------------------Tom Hals, writing for Reuters, reports that Washington Mutual Inc.said in a court filing that the termination date of its settlementagreement has been extended to January 31, 2011, from December 31,2010. Delaware Bankruptcy Judge Mary F. Walrath requested theextension to give her more time to rule on agreement.

As reported by the Troubled Company Reporter on December 23, 2010,Peg Brickley, writing for Dow Jones' Daily Bankruptcy Review, saidJudge Walrath rejected a request by Washington Mutual shareholdersto make new arguments against the Debtors' Chapter 11 plan. JudgeWalrath gave no explanation for rejecting the request. Theofficial shareholder committee opposed confirmation of the Plan.

The Plan proposes to distribute $7 billion to creditors but wipeout shareholders. According to Ms. Brickley, shareholders saidrenewed Chapter 11 plan arguments were warranted due to an eventthat they contend significantly increases the amount of valueWashington Mutual has to distribute: a delay in the parentCompany's abandonment of its equity stake in WaMu. Ms. Brickleysaid the equity is worthless in and of itself, as WaMu was soldto J.P. Morgan Chase & Co. after being seized by regulators.However, it entitles Washington Mutual to take advantage of taxbreaks due to the losses it sustained when the thrift was seized.By waiting until next year to shed the WaMu equity, WashingtonMutual boosted the size of the tax breaks available to it.

Once out of bankruptcy, Ms. Brickley said, WaMu will continueto exist as a shell, operating an insurance company in "run-off,"that is, writing no new business but managing existing policies.At confirmation hearings, WaMu said it expects the reorganizedcompany to be able to use $100 million worth of tax breaks toshelter the income from its severely curtailed continuingoperations.

The plan confirmation trial concluded December 7. The TroubledCompany Reporter, citing a Dow Jones' Daily Bankruptcy Reviewarticle, reported December 21, 2010, that Judge Walrath said shewon't rule on the Plan this year.

The TCR, citing Reuters, reported that the settlement requirescourt approval by December 31 but Judge Walrath said the courtcould not meet that deadline. She ordered the parties to adviseher by December 29 if they would extend the deadline for heropinion to January 31.

About Washington Mutual

Based in Seattle, Washington, Washington Mutual Inc. --http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries.

Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S.government regulators and sold to JPMorgan Chase & Co. for $1.88billion. The next day, WaMu and its affiliate, WMI InvestmentCorp., filed separate petitions for Chapter 11 relief (Bankr. D.Del. 08-12229 and 08-12228, respectively). WaMu owns 100% of theequity in WMI Investment. When WaMu filed for protection from itscreditors, it disclosed assets of $32,896,605,516 and debts of$8,167,022,695. WMI Investment estimated assets of $500 millionto $1 billion with zero debts.

WESTINGHOUSE SOLAR: Receives Delisting Notification---------------------------------------------------Akeena Solar, Inc. d/b/a Westinghouse Solar received writtennotification on December 29, 2010 from the Listing QualificationsDepartment of The NASDAQ Stock Market LLC stating that theCompany's common stock is subject to delisting from The NASDAQCapital Market, pending the Company's opportunity to request ahearing before the NASDAQ Listing Qualifications Panel (.

As previously disclosed, on July 2, 2010, the Company received anotice from the Staff stating that the minimum bid price of theCompany's common stock had been below $1.00 per share for 30consecutive business days and that the Company was therefore notin compliance with the minimum bid price requirement for continuedlisting on The NASDAQ Capital Market set forth in Listing Rule5550(a)(2). The notice indicated that the Company had beengranted 180 calendar days, or until December 28, 2010, to regaincompliance. The notice received on December 29, 2010 informed theCompany of the Staff Determination that the Company had notregained compliance with the minimum bid requirement, and that itscommon stock is therefore subject to delisting from The NASDAQCapital Market.

The Company intends to request a hearing before the Panel toreview the Staff Determination, which will stay any action withrespect to the Staff Determination and allow the continued listingof the Company's common stock on The NASDAQ Capital Market untilthe Panel renders a decision subsequent to the hearing. At thehearing, the Company intends to present a plan to regaincompliance and to request that the Panel allow the Companyadditional time within which to regain compliance. There can be noassurance that the Panel will grant the Company's request forcontinued listing on The NASDAQ Capital Market.

Westinghouse Solar is a manufacturer and distributor of solarpower systems. Award winning Westinghouse Solar Power Systemsprovide a leading combination of safety, performance andreliability, while backed by the proven quality of theWestinghouse name.

W.R. GRACE: BNSF & Libby Claimants Object to CNA Settlement-----------------------------------------------------------BNSF Railway Company and the Libby Claimants object to W.R. Grace& Co.'s request for approval of the settlement with The CNACompanies.

BNSF objects to the Motion on these grounds:

1. The Settlement Agreement improperly eliminates BNSF's rights as a Named Insured to policy proceeds to which the Debtors and their estates have no rights. At a minimum, the order and the Debtors' Joint Plan of Reorganization must be amended to eliminate any ambiguity.

2. The Settlement Agreement seeks to extend the channeling injunction to the CNA Companies without meeting the requirements of Section 524(g) of the Bankruptcy Code.

3. Rights of contribution and apportionment of fault among co-defendants accorded by state law are threatened.

The Libby Claimants complain that the proposed settlement purportsto take away from them insurance coverage in which they havevested rights under non-bankruptcy law and as to which they do notcompete with any other creditors of the Debtors' estate. Becausethere is no aggregate limit to the coverage and, thus, no need forbankruptcy administration of the proceeds to assure a ratabledistribution to insured claimants, proceeds of that coverageremain outside the bankruptcy estate and may not be affected bythe proposed settlement, the Libby Claimants assert.

Any order approving the proposed settlement must repair thedeliberate ambiguity in the terms of the Section 524(g) injunctionthat the CNA Companies are entitled to receive under the proposedsettlement, the Libby Claimants further assert. The terms of theinjunction leave open the possibility that the injunction mightprotect the CNA Companies not only from insured liabilitiesresulting from Grace's conduct but also from independent claims ofthe Libby Claimants against the CNA Companies' for their ownmisconduct, the Libby Claimants point out. The Court, the LibbyClaimants argue, must clarify that the injunction will not extendto insurer wrong-doing claims.

The Proposed Settlement

The Troubled Company Reporter reported on the terms of thesettlement with Continental Casualty Company and ContinentalInsurance Company on Dec. 8, 2010.

The CNA Companies issued to one or more of the Debtors certainpolicies of insurance that provide, or are alleged to provide,insurance coverage for asbestos-related claims. These policiesinclude three primary liability policies and 16 high-level excesspolicies. The excess policies provide a total of approximately$158 million in aggregate limits for products/completedoperations.

The CNA Companies and the Debtors have been engaged in multiplecoverage litigations over the past 25 years and have previouslyentered into five separate settlement agreements that addresscertain disputes regarding certain aspects of various of thepolicies. Significant coverage issues, however, remain in disputebetween the parties. In addition, the CNA Companies have filednumerous proofs of claim in the Debtors' Chapter 11 cases and haveobjected to the confirmation of the Debtors' Plan ofReorganization.

Following extensive negotiations lasting well over a year, the CNACompanies and the Debtors, with the support of the AsbestosPersonal Injury Future Claims Representative and the OfficialCommittee of the Asbestos Personal Injury Claimants, have enteredinto the settlement to effectuate both a comprehensive resolutionof all remaining disputes with respect to the "Subject Policies"and the withdrawal of the CNA Companies' objections toconfirmation of the Plan.

Pursuant to the Settlement, the CNA Companies agree to pay$84 million to the Asbestos PI Trust in seven annual installments.The first payment is due within 30 days of the effective date ofthe Plan, with the remaining six payments due on the first throughsixth anniversary dates of the effective date.

The Settlement resolves all disputes relating to any allegedremaining coverage and other obligations of the CNA Companies, aswell as any alleged obligations of the Debtors, under the SubjectPolicies. The Subject Policies covered by the settlement includeall known and unknown policies, or portions of the policies,issued to a Grace Party by any of the CNA Companies with a policyperiod incepting prior to June 30, 1985, that actually orpotentially provide insurance coverage for any Asbestos-RelatedClaims, except that the Subject Policies do not include any rightsor obligations under an insurance policy to the extent that thoserights or obligations pertain solely to coverage for Workers'Compensation Claims.

The Settlement also resolves disputes relating to coverage forAsbestos-Related Claims. For purposes of the Settlement,"Asbestos-Related Claims" include any claims made against theDebtors or the Asbestos PI Trust, or any claims made against theCNA Companies by reason of the CNA Companies' provision ofinsurance or insurance services to the Debtors, based on orarising out of the presence of, or exposure to, asbestos orasbestos-containing vermiculite, or any products, materials, orwastes containing asbestos or asbestos-containing vermiculite forwhich any of the Debtors is alleged to be liable. Asbestos-Related Claims do not, however, include Workers' CompensationClaims.

In addition, the Settlement resolves any potential disputesrelating to coverage for Asbestos-Related Claims under the 1984-85policy and all post-June 30, 1985 insurance policies issued by theCNA Companies to any of the Debtors. The parties agree that thesepolicies exclude coverage for asbestos claims.

The CNA Companies also release any rights they have against theDebtors, under the prior agreements or otherwise, to defense andindemnity for Asbestos-Related Claims asserted against the CNACompanies. The CNA Companies relinquish any rights they have tomake Indirect PI Trust Claims against the Asbestos PI Trust shouldthe CNA Companies be held liable to a third party for injuriescaused by that third party's exposure to asbestos or asbestos-containing vermiculite for which any of the Debtors are alleged tobe liable.

Under the Settlement, the Asbestos PI Trust, under certaincircumstances, will seek to enforce the application of theAsbestos PI Channeling Injunction against any Asbestos-RelatedBodily Injury Claims that may be made against the CNA Companiesby third parties, up to a limit of $1 million in litigationcosts. Should any of those claims not be enjoined, or if theyare resolved under certain circumstances, then the Asbestos PITrust will indemnify the CNA Companies for any settlementsentered into by the CNA Companies or judgments entered againstthem with respect to Asbestos-Related Bodily Injury Claims, upto $13 million. Thus, the maximum amount that the Asbestos PITrust could incur in respect of those obligations is $13 million.

Pursuant to the Settlement, the CNA Companies will immediatelysuspend prosecution of their objections to the Plan, toConfirmation of the Plan, and to the Debtors', the Asbestos PICommittee's, or the Asbestos PI FCR's motions or applicationspending in the case, and will suspend prosecution of Claim Nos.13966 to 14027 to the extent these claims relate to Asbestos-Related Claims.

Upon final approval of the Settlement, the CNA Companies willwithdraw all of their objections to the Plan and consent to theassignment of Asbestos Insurance Rights to the Asbestos PI Trust.Claim Nos. 13966 to 14027 will be deemed withdrawn with prejudiceto the extent they relate to Asbestos-Related Claims.

The Settlement further provides that, upon the Asbestos PI Trust'sreceipt of the Initial Payment, the Subject Policies will be soldto the CNA Companies free and clear of all liens, claims andencumbrances.

W.R. Grace and its debtor affiliates, with the support of theOfficial Committee of Asbestos Personal Injury Claimants, theAsbestos PI Future Claimants' Representative and the OfficialCommittee of Equity Security Holders, have submitted a proposedChapter 11 plan of reorganization. The Chapter 11 plan is builtaround an April 2008 settlement for all present and futureasbestos personal injury claims, and a subsequent settlement forasbestos property damage claims. The Plan confirmation hearingwrapped up on January 25.

W.R. GRACE: Buys West Chester, Ohio-Based Technology Company------------------------------------------------------------W.R. Grace & Co. (NYSE:GRA) announced that it has purchased theassets and associated entities of RS Solutions LLC, a privately-owned technology company located in West Chester, Ohio. Financialterms of the transaction were not disclosed.

These technologies help to measure concrete consistency (slump)during delivery to job sites. Without an effective system, theconcrete can be significantly affected by the uncontrolledaddition of water and other factors during the transportationprocess that can lead to higher costs, rejected loads and productquality claims.

Grace Construction Products, an operating segment of Grace, and RSSolutions have an established relationship. In April 2008, Gracebecame the exclusive worldwide sales and marketing agent for RSSolutions' Verifi(R) SMS (Slump Management System), a ready mixtruck on-board process control system that accurately measures,adjusts and documents concrete slump from the time a truck isloaded until the concrete is poured.

"Grace brings a unique combination of industry expertise, world-class concrete and cement science and a global presence; we areexcited to leverage these strengths to deliver solutions to theindustry," explained Doug Groh, Vice President of Sales andMarketing for RS Solutions.

About Grace Construction Products

Grace Construction Products is a world-leading provider ofconstruction chemicals and building materials that are used toenhance the durability, strength and appearance of structures allover the world. Products include technically superior concreteadmixtures, fibers, surface treatments and liquid pigments,additives for cement processing, and fire protection,waterproofing and masonry products. More information is availableat http://www.graceconstruction.com/or http://www.verificontrols.com/

W.R. Grace and its debtor affiliates, with the support of theOfficial Committee of Asbestos Personal Injury Claimants, theAsbestos PI Future Claimants' Representative and the OfficialCommittee of Equity Security Holders, have submitted a proposedChapter 11 plan of reorganization. The Chapter 11 plan is builtaround an April 2008 settlement for all present and futureasbestos personal injury claims, and a subsequent settlement forasbestos property damage claims. The Plan confirmation hearingwrapped up on January 25.

* After Two Years, Bankruptcy Boom Set to Fade in 2011------------------------------------------------------Dow Jones Small Cap reports that after two years punctuated by ahistoric economic downturn, a rash of mega-bankruptcy cases andsky-rocketing default rates, 2010 appears to have ushered in a newera of normalcy when it comes to restructuring.

Thanks to burgeoning credit markets and the recession's recentpurge of the weakest companies, today's survivors are largelykeeping themselves out of bankruptcy court, according to DowJones.

The report notes that the lull in filings is giving bankruptcyexperts a chance to breathe, regroup and take stock of the newrestructuring landscape, which is expected to be populated mainlyby middle-market companies.

"Everyone's gotten so used to these multibillions of dollar cases,but I don't think that that ever became or should be expected tobe the long-term norm," the report quoted Adam Rogoff, abankruptcy partner with Kramer Levin Naftalis & Frankel, assaying.

* Level of Bank Failures Worst Since 1992, FDIC Says----------------------------------------------------American Bankruptcy Institute reports that the Federal DepositInsurance Corp. said more banks failed in the United States thisyear than in any year since 1992, during the savings-and-loancrisis.

* Rising Returns Lift Leveraged Loans Outlook for Coming Year-------------------------------------------------------------Investors expect another strong year in the leveraged loan marketin 2011, with issuance levels continuing to rebound from theircredit-crisis lows and anticipated returns in the mid- to high-single digits, Dow Jones' Small Cap reports.

* Strategic Value Partners Strategy Set on Driving Restructurings-----------------------------------------------------------------Dow Jones' Small Cap reports that Victor Khosla doesn't think it'senough to just invest in distressed companies; now's the time totake control in both the U.S. and Europe.

For Khosla, whose New York-based Strategic Value Partners LLC runs$3.5 billion in distressed strategies, 2010 was - and 2011 is -about finding the companies that need to make changes and actuallyfacilitate them, according to the Dow Jones'.

"We're really looking to buy distressed debt and run and driverestructurings," the report quoted Mr. Khosla as saying.

Dow Jones' notes that Strategic has already been doing a lot ofthat and is seeing opportunities all across Europe and in certainsectors in the U.S., although Strategic tries to stay away fromU.S. financial and automobile investments if it can. The reportrelates that one thing that's certain on both sides of theAtlantic, he thinks, is that banks will be selling much more debt.

Khosla founded Strategic in 2001 after starting Merrill Lynch'sglobal distressed debt business and working as a portfolio managerat Louis Bacon's Moore Capital, the report adds.

* President Obama Approves Technical Changes to Bankruptcy Code---------------------------------------------------------------According to an article posted by Bob Lawless at CreditSlips.org,President Barack Obama on December 23 signed a bill that madetechnical corrections to the Bankruptcy Code. The bill was notintended to make any substantive changes but only to correctdrafting mistakes from the 2005 changes to the bankruptcy law.

Mr. Lawless pointed to two changes:

-- Congress fixed the double negative in section 1112(b)(2).If "cause" was established, the original wording required thecourt not to dismiss or convert a chapter 11 unless unusualcircumstances existed showing that dismissal or conversion was notin the best interests of creditors. The double negative meantdismissal should happen only when it was bad for creditors.

-- Section 308 imposes reporting requirements on "smallbusiness debtors," which are business debtors with less than about$2.2 million in debt. The bill changes the term "small businessdebtor" to "small business case," which are small business debtorsin chapter 11. As originally drafted, section 308's reportingrequirements could have applied to small business debtors outsideof chapter 11, even to self-employed individuals in chapters 7 or13. The original language made a careful distinction between"debtors" (everyone) and "cases" (chapter 11s), and Congress choseto locate the section in the generally applicable provisions ofchapter 3. The change now clearly limits section 308'sapplication only to chapter 11.

A copy of the enrolled bill is available at http://is.gd/jZp7yfrom Credit Slips. Mr. Lawless said the public law version is notavailable as of the writing of the article.

Monday's edition of the TCR delivers a list of indicative pricesfor bond issues that reportedly trade well below par. Prices areobtained by TCR editors from a variety of outside sources duringthe prior week we think are reliable. Those sources may not,however, be complete or accurate. The Monday Bond Pricing tableis compiled on the Friday prior to publication. Prices reportedare not intended to reflect actual trades. Prices for actualtrades are probably different. Our objective is to shareinformation, not make markets in publicly traded securities.Nothing in the TCR constitutes an offer or solicitation to buy orsell any security of any kind. It is likely that some entityaffiliated with a TCR editor holds some position in the issuers"public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies withinsolvent balance sheets whose shares trade higher than $3 pershare in public markets. At first glance, this list may look likethe definitive compilation of stocks that are ideal to sell short.Don't be fooled. Assets, for example, reported at historical costnet of depreciation may understate the true value of a firm'sassets. A company may establish reserves on its balance sheet forliabilities that may never materialize. The prices at whichequity securities trade in public market are determined by morethan a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in eachWednesday's edition of the TCR. Submissions about insolvency-related conferences are encouraged. Send announcements toconferences@bankrupt.com by e-mail.

On Thursdays, the TCR delivers a list of recently filedChapter 11 cases by individuals and business entities estimatingassets and debts or disclosing assets and liabilities at less than$1,000,000. The list includes links to freely downloadable imagesof the small-dollar business-related petitions in Acrobat PDFformat.

Each Friday's edition of the TCR includes a review about a book ofinterest to troubled company professionals. All titles areavailable at your local bookstore or through Amazon.com. Go tohttp://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday editionof the TCR.

The Sunday TCR delivers securitization rating news from the weekthen-ending.

For copies of court documents filed in the District of Delaware,please contact Vito at Parcels, Inc., at 302-658-9911. Forbankruptcy documents filed in cases pending outside the Districtof Delaware, contact Ken Troubh at Nationwide Research &Consulting at 207/791-2852.

This material is copyrighted and any commercial use, resale orpublication in any form (including e-mail forwarding, electronicre-mailing and photocopying) is strictly prohibited without priorwritten permission of the publishers. Information containedherein is obtained from sources believed to be reliable, but isnot guaranteed.

The TCR subscription rate is $775 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the samefirm for the term of the initial subscription or balance thereofare $25 each. For subscription information, contact ChristopherBeard at 240/629-3300.